Discounted Cash Flow (DCF) Analysis Levered
Kinder Morgan, Inc. (KMI)
$16.74
+0.26 (+1.58%)
All numbers are in Millions, Currency in USD
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 | 13,705 | 14,144 | 13,209 | 11,700 | 16,610 | 17,736.76 | 18,939.95 | 20,224.76 | 21,596.73 | 23,061.76 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,601 | 5,043 | 4,748 | 4,550 | 5,708 | 6,329.37 | 6,758.73 | 7,217.22 | 7,706.80 | 8,229.60 |
| 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 | 1,413 | 2,119 | 2,478 | 2,843 | 4,427 | 3,370.11 | 3,598.72 | 3,842.84 | 4,103.53 | 4,381.89 |
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 | 13,705 | 14,144 | 13,209 | 11,700 | 16,610 | 17,736.76 | 18,939.95 | 20,224.76 | 21,596.73 | 23,061.76 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,601 | 5,043 | 4,748 | 4,550 | 5,708 | 6,329.37 | 6,758.73 | 7,217.22 | 7,706.80 | 8,229.60 |
| 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 | 1,413 | 2,119 | 2,478 | 2,843 | 4,427 | 3,370.11 | 3,598.72 | 3,842.84 | 4,103.53 | 4,381.89 |
| WACC | ||||||||||
| PV LFCF | 3,185.05 | 3,214.36 | 3,243.94 | 3,273.79 | 3,303.91 | |||||
| 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 |