Kinder Morgan Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 KMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KMI ($18.76) is trading above our estimate of fair value ($14.31)

Significantly Below Fair Value: KMI is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

KMI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.9x
Enterprise Value/EBITDA11.6x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does KMI's PE Ratio compare to its peers?

The above table shows the PE ratio for KMI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
MPLX MPLX
11x1.7%US$41.9b
WMB Williams Companies
14.4x-0.07%US$47.3b
OKE ONEOK
17.6x7.4%US$46.9b
ET Energy Transfer
15.4x16.0%US$53.5b
KMI Kinder Morgan
17x5.4%US$41.6b

Price-To-Earnings vs Peers: KMI is expensive based on its Price-To-Earnings Ratio (17x) compared to the peer average (14.6x).


Price to Earnings Ratio vs Industry

How does KMI's PE Ratio compare vs other companies in the US Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: KMI is expensive based on its Price-To-Earnings Ratio (17x) compared to the US Oil and Gas industry average (9.6x).


Price to Earnings Ratio vs Fair Ratio

What is KMI'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.

KMI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: KMI is expensive based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


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 KMI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.76
US$20.38
+8.7%
5.3%US$22.00US$18.00n/a19
Apr ’25US$18.41
US$20.33
+10.4%
7.0%US$23.00US$17.00n/a18
Mar ’25US$17.46
US$20.50
+17.4%
7.3%US$23.00US$17.00n/a18
Feb ’25US$17.03
US$20.56
+20.7%
6.9%US$23.00US$17.00n/a18
Jan ’25US$17.64
US$20.41
+15.7%
6.8%US$23.00US$17.00n/a19
Dec ’24US$17.75
US$20.28
+14.2%
7.6%US$23.00US$17.00n/a19
Nov ’24US$16.35
US$20.17
+23.4%
7.3%US$22.00US$17.00n/a19
Oct ’24US$16.58
US$20.29
+22.4%
7.4%US$23.00US$17.50n/a18
Sep ’24US$17.14
US$20.29
+18.4%
7.4%US$23.00US$17.50n/a18
Aug ’24US$17.56
US$20.29
+15.6%
7.4%US$23.00US$17.50n/a18
Jul ’24US$17.22
US$20.18
+17.2%
7.3%US$23.00US$17.50n/a19
Jun ’24US$16.26
US$20.13
+23.8%
7.3%US$23.00US$17.50n/a19
May ’24US$17.10
US$20.13
+17.7%
7.3%US$23.00US$17.50n/a19
Apr ’24US$17.51
US$20.12
+14.9%
7.9%US$24.00US$17.50US$18.4120
Mar ’24US$17.26
US$20.16
+16.8%
7.8%US$24.00US$17.50US$17.4621
Feb ’24US$18.37
US$20.02
+9.0%
7.8%US$24.00US$17.50US$17.0320
Jan ’24US$18.08
US$19.73
+9.1%
8.3%US$24.00US$17.50US$17.6420
Dec ’23US$19.15
US$19.76
+3.2%
8.5%US$24.00US$17.50US$17.7519
Nov ’23US$18.24
US$19.82
+8.6%
8.6%US$24.00US$17.50US$16.3519
Oct ’23US$16.64
US$20.34
+22.2%
8.8%US$25.00US$17.50US$16.5819
Sep ’23US$18.17
US$20.23
+11.3%
9.4%US$25.00US$17.00US$17.1419
Aug ’23US$17.90
US$20.02
+11.8%
9.7%US$25.00US$17.00US$17.5619
Jul ’23US$16.98
US$20.02
+17.9%
8.6%US$24.00US$17.00US$17.2221
Jun ’23US$20.02
US$20.13
+0.5%
8.4%US$24.00US$17.00US$16.2620
May ’23US$18.15
US$19.93
+9.8%
8.8%US$24.00US$17.00US$17.1021
Apr ’23US$19.22
US$19.36
+0.7%
8.4%US$24.00US$17.00US$17.5122

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


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