DCF Tool

KMI

Kinder Morgan Inc – Pipeline Transportation of Crude Oil
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities and businesses we serve. We own an interest in or operate approximately 83,000 miles of pipelines and 147 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals store and handle various commodities including gasoline, diesel fuel chemicals, ethanol, metals and petroleum coke.
Analysis Results
Intrinsic Value $85.51
Latest Price $19.03
Relative Value 78% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 12.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 4.6 4.39
2023 5.19 4.72
2024 5.84 5.08
2025 6.59 5.47
2026 7.43 5.88
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 223 billion. This corresponds to a present value of 168 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 25.5 billion. Adding in the terminal value gives a total present value of 194 billion.

There are presently 2.27 billion outstanding shares, so the intrinsic value per share is 85.51.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,658,000,000
Current Cash 2,280,000,000
Current Liabilities 11,642,000,000
Current Debt 5,292,000,000
Non-Cash Working Capital (NCWC) -972,000,000
Change in NCWC -475,000,000
EBIT 10,248,000,000
Tax Provision 738,000,000
Depreciation and Amortization 4,270,000,000
Capital Expenditure -2,562,000,000
Unlevered Free Cash Flow 9,776,848,580
Current Assets 3,203,000,000
Current Cash 1,184,000,000
Current Liabilities 5,074,000,000
Current Debt 2,558,000,000
Non-Cash Working Capital (NCWC) -497,000,000
Change in NCWC -2,000,000
EBIT 4,270,000,000
Tax Provision 481,000,000
Depreciation and Amortization 2,164,000,000
Capital Expenditure -1,707,000,000
Unlevered Free Cash Flow 1,617,783,661
Current Assets 3,238,000,000
Current Cash 1,110,000,000
Current Liabilities 5,100,000,000
Current Debt 2,477,000,000
Non-Cash Working Capital (NCWC) -495,000,000
Change in NCWC 1,232,000,000
EBIT 4,029,000,000
Tax Provision 926,000,000
Depreciation and Amortization 2,411,000,000
Capital Expenditure -2,270,000,000
Unlevered Free Cash Flow 4,223,215,165
Current Assets 5,722,000,000
Current Cash 3,280,000,000
Current Liabilities 7,557,000,000
Current Debt 3,388,000,000
Non-Cash Working Capital (NCWC) -1,727,000,000
Change in NCWC -825,000,000
EBIT 4,845,000,000
Tax Provision 587,000,000
Depreciation and Amortization 2,297,000,000
Capital Expenditure -2,904,000,000
Unlevered Free Cash Flow 2,278,117,717
Current Assets 2,715,000,000
Current Cash 264,000,000
Current Liabilities 6,181,000,000
Current Debt 2,828,000,000
Non-Cash Working Capital (NCWC) -902,000,000
Change in NCWC -219,000,000
EBIT 4,134,000,000
Tax Provision 1,938,000,000
Depreciation and Amortization 2,261,000,000
Capital Expenditure -3,188,000,000
Unlevered Free Cash Flow -719,400,277
Current Assets 3,229,000,000
Current Cash 684,000,000
Current Liabilities 5,924,000,000
Current Debt 2,696,000,000
Non-Cash Working Capital (NCWC) -683,000,000
Change in NCWC -34,000,000
EBIT 4,455,000,000
Tax Provision 917,000,000
Depreciation and Amortization 2,209,000,000
Capital Expenditure -2,882,000,000
Unlevered Free Cash Flow 1,253,961,538
Current Assets 2,824,000,000
Current Cash 229,000,000
Current Liabilities 4,065,000,000
Current Debt 821,000,000
Non-Cash Working Capital (NCWC) -649,000,000
Change in NCWC -441,000,000
EBIT 4,927,000,000
Tax Provision 564,000,000
Depreciation and Amortization 2,309,000,000
Capital Expenditure -3,896,000,000
Unlevered Free Cash Flow -700,518,134
Current Assets 3,752,000,000
Current Cash 315,000,000
Current Liabilities 6,362,000,000
Current Debt 2,717,000,000
Non-Cash Working Capital (NCWC) -208,000,000
Change in NCWC 291,000,000
EBIT 5,129,000,000
Tax Provision 648,000,000
Depreciation and Amortization 2,040,000,000
Capital Expenditure -3,617,000,000
Unlevered Free Cash Flow 2,767,751,860
Current Assets 3,868,000,000
Current Cash 598,000,000
Current Liabilities 6,075,000,000
Current Debt 2,306,000,000
Non-Cash Working Capital (NCWC) -499,000,000
Change in NCWC -699,000,000
EBIT 4,317,000,000
Tax Provision 742,000,000
Depreciation and Amortization 1,806,000,000
Capital Expenditure -3,369,000,000
Unlevered Free Cash Flow 1,123,291,448
Current Assets 3,674,000,000
Current Cash 714,000,000
Current Liabilities 5,209,000,000
Current Debt 2,449,000,000
Non-Cash Working Capital (NCWC) 200,000,000
Change in NCWC 555,800,000
EBIT 2,733,000,000
Tax Provision 139,000,000
Depreciation and Amortization 1,426,000,000
Capital Expenditure -2,022,000,000
Unlevered Free Cash Flow 2,409,935,517

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.