Kinder Morgan Valuation

Is 0JR2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0JR2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$34.22
Fair Value
22.1% undervalued intrinsic discount
18
Number of Analysts

Below Fair Value: 0JR2 ($26.68) is trading below our estimate of fair value ($34.22)

Significantly Below Fair Value: 0JR2 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0JR2?

Key metric: As 0JR2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0JR2. This is calculated by dividing 0JR2's market cap by their current earnings.
What is 0JR2's PE Ratio?
PE Ratio22.8x
EarningsUS$2.61b
Market CapUS$60.14b

Price to Earnings Ratio vs Peers

How does 0JR2's PE Ratio compare to its peers?

The above table shows the PE ratio for 0JR2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.7x
33.1x25.6%UK£72.4b
SHEL Shell
12.7x7.4%UK£165.1b
WMB Williams Companies
23.4x5.3%US$68.5b
LNG Cheniere Energy
13.5x-7.3%US$49.7b
0JR2 Kinder Morgan
22.8x10.2%US$60.1b

Price-To-Earnings vs Peers: 0JR2 is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the peer average (20.7x).


Price to Earnings Ratio vs Industry

How does 0JR2's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
ROSN Rosneft Oil
1.5xn/aUS$21.03b
No more companies available in this PE range
0JR2 22.8xIndustry Avg. 10.0xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0JR2 is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the UK Oil and Gas industry average (10.1x).


Price to Earnings Ratio vs Fair Ratio

What is 0JR2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0JR2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.8x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: 0JR2 is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0JR2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.68
US$29.35
+10.0%
15.3%US$38.00US$22.00n/a18
Feb ’26US$27.54
US$29.59
+7.4%
16.3%US$38.13US$22.00n/a18
Jan ’26US$27.50
US$26.53
-3.5%
12.0%US$34.00US$22.00n/a16
Dec ’25US$28.27
US$25.90
-8.4%
11.3%US$33.00US$22.00n/a16
Nov ’25US$24.21
US$24.71
+2.1%
8.1%US$29.00US$22.00n/a16
Oct ’25US$22.50
US$22.53
+0.2%
5.8%US$25.00US$19.00n/a15
Sep ’25US$21.42
US$22.31
+4.2%
5.7%US$24.00US$19.00n/a16
Aug ’25US$20.93
US$22.00
+5.1%
5.6%US$24.00US$19.00n/a16
Jul ’25US$19.73
US$21.00
+6.5%
6.3%US$24.00US$19.00n/a16
Jun ’25US$19.36
US$20.59
+6.3%
5.8%US$22.00US$18.00n/a17
May ’25US$18.21
US$20.37
+11.9%
5.3%US$22.00US$18.00n/a19
Apr ’25US$18.40
US$20.33
+10.5%
7.0%US$23.00US$17.00n/a18
Mar ’25US$17.48
US$20.50
+17.3%
7.3%US$23.00US$17.00n/a18
Feb ’25US$17.00
US$20.56
+20.9%
6.9%US$23.00US$17.00US$27.5418
Jan ’25US$17.61
US$20.41
+15.9%
6.8%US$23.00US$17.00US$27.5019
Dec ’24US$17.73
US$20.28
+14.4%
7.6%US$23.00US$17.00US$28.2719
Nov ’24US$16.42
US$20.17
+22.9%
7.3%US$22.00US$17.00US$24.2119
Oct ’24US$16.56
US$20.29
+22.6%
7.4%US$23.00US$17.50US$22.5018
Sep ’24US$17.10
US$20.29
+18.7%
7.4%US$23.00US$17.50US$21.4218
Aug ’24US$17.53
US$20.29
+15.8%
7.4%US$23.00US$17.50US$20.9318
Jul ’24US$17.20
US$20.18
+17.3%
7.3%US$23.00US$17.50US$19.7319
Jun ’24US$16.19
US$20.13
+24.4%
7.3%US$23.00US$17.50US$19.3619
May ’24US$17.19
US$20.13
+17.1%
7.3%US$23.00US$17.50US$18.2119
Apr ’24US$17.43
US$20.16
+15.7%
7.8%US$24.00US$17.50US$18.4021
Mar ’24US$17.32
US$20.16
+16.4%
7.8%US$24.00US$17.50US$17.4821
Feb ’24US$18.26
US$20.02
+9.6%
7.8%US$24.00US$17.50US$17.0020
Analyst Price Target
Consensus Narrative from 18 Analysts
US$29.22
Fair Value
8.7% undervalued intrinsic discount
18
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/11 08:01
End of Day Share Price 2025/02/11 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Kinder Morgan, Inc. is covered by 42 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William SeleskyArgus Research Company
Ishan MajumdarBaptista Research
Richard GrossBarclays