Kinder Morgan operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments. The company was founded in 2011 and is based in Houston, Texas.
KMI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Kinder Morgan Inc. To summarize, we found that Kinder Morgan Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 182.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Kinder Morgan Inc ended up being:
Kinder Morgan Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 8.82% of tickers in our DCF set.
As a business, Kinder Morgan Inc experienced a tax rate of about 16% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 63.99% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KMI, try VLO, CKH, EOG, SHI, and NINE.