Kinder Morgan, Inc. (KMI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+24.2%

$40.85

vs $32.88 price

Levered DCF

$38.25

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.33

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.07×	23.42×	16.64×	16.14×	20.33×	292.09×	22.05×	23.3×
P/B	1.96×	1.99×	1.3×	1.33×	1.17×	0.98×	1.42×	1.01×
P/S	3.61×	4.04×	2.6×	2.09×	2.05×	2.69×	3.64×	2.39×
EV / EBITDA	12.49×	12.2×	9.92×	10.3×	11.74×	14.58×	11.13×	10.13×
Gross margin	43.7%	36.7%	33.9%	28.1%	36.3%	37.3%	37.2%	35.1%
Operating margin	28.4%	29.1%	26.7%	22.6%	30.1%	28.3%	29.5%	28.5%
Net margin	18.0%	17.3%	15.8%	13.0%	10.2%	1.0%	16.6%	11.3%
Current ratio	0.64×	0.49×	0.35×	0.55×	0.66×	0.63×	0.63×	0.76×
Debt / equity	1.04×	1.06×	1.08×	1.05×	1.1×	1.1×	1.01×	1.1×
Interest coverage	2.67×	2.35×	2.24×	2.94×	3.53×	2.05×	2.17×	2.14×
Dividend yield	4.3%	4.2%	6.4%	6.1%	6.8%	7.6%	4.5%	5.2%
Payout ratio	85.2%	97.9%	105.8%	98.3%	136.9%	1984.9%	98.8%	110.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.8%	8.6%	7.9%	8.3%	5.8%	0.4%	6.5%	4.8%
Return on invested capital	5.3%	5.1%	4.6%	5.2%	6.4%	1.3%	3.8%	4.2%
Return on assets	4.1%	3.7%	3.4%	3.6%	2.5%	0.2%	3.0%	2.0%
Free cash flow yield	4.7%	4.9%	10.5%	8.2%	12.3%	9.2%	5.2%	6.2%
Earnings yield	5.0%	4.3%	6.1%	6.2%	5.0%	0.4%	4.6%	4.7%
Enterprise value	$93.4B	$93.1B	$72B	$72.4B	$68.7B	$64.3B	$81.9B	$67.9B
Net debt / EBITDA	4.32×	4.23×	4.49×	4.49×	5.6×	7.57×	4.62×	5.04×
Cash conversion cycle (days)	5	4	8	13	11	16	14	1