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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (76292)	10/4/2024 11:20:51 PM
From: Elroy	1 Recommendation Recommended By Lance Bredvold Respond to of 78485

Looks like WMB getting AI love using the NG to power these AI data Center generators Well, I suppose. The forecast was 6.5% EBITDA growth through 2025. That's not really that amazing, is it? WMB is doing about $7.5b EBITDA per year. And increase of 6.5% would put them at about $8b EBITDA in 2025. Market cap is $60b, and debt is about $24 billion. Does 10x 2025 EBITDA seem the right multiple? Seems pricey to me, and the broker is upgrading it because......WMB should be priced higher? I don't really know their business all that well, but I'm surprised it was worth about $30 from 2015 to Sep 2023, and in the last year it has moved from $30ish to $50ish. Huge move for a stable slowly growing energy transport company. Is it's business going to accelerate? Of 6.5% growth is good for WMB? NGL is probably going to grow EBITDA well above 6.5% for many years to come. Hopefully some day it gets a 10x EBITDA multiple!