Discounted Cash Flow (DCF) Analysis Levered

Kinder Morgan, Inc. (KMI)

$16.74

+0.26 (+1.58%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.98 | 16.74 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 13,70514,14413,20911,70016,61017,736.7618,939.9520,224.7621,596.7323,061.76
Revenue (%)
Operating Cash Flow 4,6015,0434,7484,5505,7086,329.376,758.737,217.227,706.808,229.60
Operating Cash Flow (%)
Capital Expenditure -3,188-2,924-2,270-1,707-1,281-2,959.27-3,160.01-3,374.37-3,603.28-3,847.71
Capital Expenditure (%)
Free Cash Flow 1,4132,1192,4782,8434,4273,370.113,598.723,842.844,103.534,381.89

Weighted Average Cost Of Capital

Share price $ 16.74
Beta 0.894
Diluted Shares Outstanding 2,267
Cost of Debt
Tax Rate 19.60
After-tax Cost of Debt 4.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.379
Total Debt 33,320
Total Equity 37,949.58
Total Capital 71,269.58
Debt Weighting 46.75
Equity Weighting 53.25
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 13,70514,14413,20911,70016,61017,736.7618,939.9520,224.7621,596.7323,061.76
Operating Cash Flow 4,6015,0434,7484,5505,7086,329.376,758.737,217.227,706.808,229.60
Capital Expenditure -3,188-2,924-2,270-1,707-1,281-2,959.27-3,160.01-3,374.37-3,603.28-3,847.71
Free Cash Flow 1,4132,1192,4782,8434,4273,370.113,598.723,842.844,103.534,381.89
WACC
PV LFCF 3,185.053,214.363,243.943,273.793,303.91
SUM PV LFCF 16,221.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.81
Free cash flow (t + 1) 4,469.53
Terminal Value 117,310.51
Present Value of Terminal Value 88,451.13

Intrinsic Value

Enterprise Value 104,672.17
Net Debt 32,180
Equity Value 72,492.17
Shares Outstanding 2,267
Equity Value Per Share 31.98