Discounted Cash Flow (DCF) Analysis Levered

Kinder Morgan, Inc. (KMI)

$18.04

-0.34 (-1.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.53 | 18.04 | undervalue

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 14,14413,20911,70016,61017,934.9919,365.6820,910.4922,578.5424,379.6426,324.4228,424.34
Revenue (%)
Operating Cash Flow 5,0434,7484,5505,7086,494.877,012.977,572.408,176.468,828.709,532.9710,293.42
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 2,1192,4782,8434,4273,797.434,100.364,427.454,780.635,161.985,573.766,018.38

Weighted Average Cost Of Capital

Share price $ 18.04
Beta 0.949
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 8.032
Total Debt 31,673
Total Equity 40,553.92
Total Capital 72,226.92
Debt Weighting 43.85
Equity Weighting 56.15
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 14,14413,20911,70016,61017,934.9919,365.6820,910.4922,578.5424,379.6426,324.4228,424.34
Operating Cash Flow 5,0434,7484,5505,7086,494.877,012.977,572.408,176.468,828.709,532.9710,293.42
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 2,1192,4782,8434,4273,797.434,100.364,427.454,780.635,161.985,573.766,018.38
WACC
PV LFCF 3,797.433,862.433,928.543,995.794,064.184,133.744,204.50
SUM PV LFCF 21,578.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.16
Free cash flow (t + 1) 6,138.75
Terminal Value 147,566.02
Present Value of Terminal Value 109,441.44

Intrinsic Value

Enterprise Value 131,020.32
Net Debt 30,928
Equity Value 100,092.32
Shares Outstanding 2,248
Equity Value Per Share 44.53