Discounted Cash Flow (DCF) Analysis Levered
Kinder Morgan, Inc. (KMI)
$16.79
+0.40 (+2.44%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 14,144 | 13,209 | 11,700 | 16,610 | 17,934.99 | 19,365.68 | 20,910.49 | 22,578.54 | 24,379.64 | 26,324.42 | 28,424.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 5,043 | 4,748 | 4,550 | 5,708 | 6,494.87 | 7,012.97 | 7,572.40 | 8,176.46 | 8,828.70 | 9,532.97 | 10,293.42 |
| Operating Cash Flow (%) | |||||||||||
| Capital Expenditure | -2,924 | -2,270 | -1,707 | -1,281 | -2,697.44 | -2,912.61 | -3,144.95 | -3,395.83 | -3,666.72 | -3,959.21 | -4,275.04 |
| Capital Expenditure (%) | |||||||||||
| Free Cash Flow | 2,119 | 2,478 | 2,843 | 4,427 | 3,797.43 | 4,100.36 | 4,427.45 | 4,780.63 | 5,161.98 | 5,573.76 | 6,018.38 |
Weighted Average Cost Of Capital
| Share price | $ 16.79 |
|---|---|
| Beta | 0.928 |
| Diluted Shares Outstanding | 2,248 |
| Cost of Debt | |
| Tax Rate | 24.80 |
| After-tax Cost of Debt | 3.76% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.759 |
| Total Debt | 31,673 |
| Total Equity | 37,743.92 |
| Total Capital | 69,416.92 |
| Debt Weighting | 45.63 |
| Equity Weighting | 54.37 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 14,144 | 13,209 | 11,700 | 16,610 | 17,934.99 | 19,365.68 | 20,910.49 | 22,578.54 | 24,379.64 | 26,324.42 | 28,424.34 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,043 | 4,748 | 4,550 | 5,708 | 6,494.87 | 7,012.97 | 7,572.40 | 8,176.46 | 8,828.70 | 9,532.97 | 10,293.42 |
| Capital Expenditure | -2,924 | -2,270 | -1,707 | -1,281 | -2,697.44 | -2,912.61 | -3,144.95 | -3,395.83 | -3,666.72 | -3,959.21 | -4,275.04 |
| Free Cash Flow | 2,119 | 2,478 | 2,843 | 4,427 | 3,797.43 | 4,100.36 | 4,427.45 | 4,780.63 | 5,161.98 | 5,573.76 | 6,018.38 |
| WACC | |||||||||||
| PV LFCF | 2,847.05 | 2,902.07 | 2,958.15 | 3,015.32 | 3,073.59 | 3,132.98 | 3,193.53 | ||||
| SUM PV LFCF | 21,721.44 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.93 |
| Free cash flow (t + 1) | 6,138.75 |
| Terminal Value | 156,202.20 |
| Present Value of Terminal Value | 117,109.54 |
Intrinsic Value
| Enterprise Value | 138,830.98 |
|---|---|
| Net Debt | 30,928 |
| Equity Value | 107,902.98 |
| Shares Outstanding | 2,248 |
| Equity Value Per Share | 48.00 |