Discounted Cash Flow

Kinder Morgan, Inc.

KMI · Based on 10 years of SEC filings · Converted from CAD to USD

⚠ Cash flow predictability 60/100 (moderate) — FCF YoY std dev 52%, net income 63% (full history)

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income
Dividends

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $9.5b $514.2m $1.4b 5.4% $0.25
2017 $10.0b (5.0%) $132.9m (-74.2%) $1.0b (-25.8%) 1.3% (-75.4%) $0.01 (-96.0%)
2018 $10.3b (3.2%) $1.2b (779.2%) $1.6b (51.4%) 11.4% (751.9%) $0.66 (6500.0%)
2019 $9.6b (-6.6%) $1.6b (36.1%) $1.8b (15.8%) 16.6% (45.7%) $0.96 (45.5%)
2020 $8.5b (-11.4%) $86.4m (-94.6%) $86.4m (-95.2%) 1.0% (-93.9%) $0.05 (-94.8%)
2021 $12.1b (42.0%) $1.3b (1399.2%) $3.2b (3620.2%) 10.7% (956.0%) $0.78 (1460.0%)
2022 $13.9b (15.6%) $1.9b (42.8%) $2.4b (-24.4%) 13.3% (23.6%) $1.12 (43.6%)
2023 $11.1b (-20.1%) $1.7b (-6.2%) $3.0b (24.7%) 15.6% (17.5%) $1.06 (-5.4%)
2024 $11.0b (-1.5%) $1.9b (9.3%) $2.2b (-28.0%) 17.3% (11.0%) $1.17 (10.4%)
2025 $12.3b (12.2%) $2.2b (17.0%) $2.1b (-3.8%) 18.0% (4.3%) $1.37 (17.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

SEC filings report in CAD. Values above are converted to USD for comparison with the US-listed share price.

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model