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:
Below please find a table outlining a discounted cash flow forecast for KMI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Kinder Morgan Inc ranked in the 68th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 143.17%. As for the metrics that stood out in our discounted cash flow analysis of Kinder Morgan Inc, consider:
48% of the company's capital comes from equity, which is greater than only 21.72% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than merely 21.52% stocks in the Energy sector that generate 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 GEOS, RES, DCP, PXD, and EURN.
Kinder Morgan, Inc. (KMI) is one of the largest and most well-known midstream companies in the United States. This is a sector that has been somewhat troubled since the novel coronavirus hit and this is reflected in the recent stock price performance. However, as is the case with most midstream...
Kinder Morgan (NYSE: KMI) is one of the largest midstream companies with a market capitalization near $30 billion. The company has a current dividend yield of more than 8%, although it has the potential to increase that to near 10%. That substantial dividend, in a normal market, combined with the...
The Value Portfolio on Seeking Alpha | September 25, 2020