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Discounted Cash Flow (DCF) Analysis Unlevered


Kinder Morgan Inc.

Kinder Morgan Inc. (KMI)

Energy

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 14,070.0016,225.5214,401.7813,056.6513,702.9514,141.4514,223.4714,305.9614,388.9414,472.3914,556.33
Revenue (%)
EBITDA 5,415.545,511.815,177.445,640.476,214.296,410.325,743.445,776.755,810.255,843.955,877.85
EBITDA (%)
EBIT 3,608.953,472.262,868.833,431.293,953.304,113.753,584.313,605.103,626.013,647.043,668.20
EBIT (%)
Depreciation 1,806.592,039.552,308.602,209.192,260.992,296.572,159.122,171.652,184.242,196.912,209.65
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 597.98314.78228.99684.17264.473,279.40904.61909.86915.14920.44925.78
Total Cash (%)
Account Receivables 1,720.761,640.401,314.881,369.641,448.401,497.581,496.311,504.991,513.721,522.501,531.33
Account Receivables (%)
Inventories 430.54459.18407.57356.45423.42384.65409.64412.01414.40416.80419.22
Inventories (%)
Accounts Payable 1,675.741,588.481,192.471,257.361,340.151,336.371,395.321,403.421,411.551,419.741,427.98
Accounts Payable (%)
Capital Expenditure -3,368.36-3,611.80-3,856.80-2,552.57-3,069.46-2,924.45-3,214.50-3,233.15-3,251.90-3,270.76-3,289.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.17
Diluted Shares Outstanding 2,216.00
Cost of Debt
Tax Rate 26.73
After-tax Cost of Debt -1.29
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.12
Total Debt 33,936.00
Total Equity 44,696.72
Total Capital 78,632.72
Debt Weighting 43.16
Equity Weighting 56.84
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 14,070.0016,225.5214,401.7813,056.6513,702.9514,141.4514,223.4714,305.9614,388.9414,472.3914,556.33
EBITDA 5,415.545,511.815,177.445,640.476,214.296,410.325,743.445,776.755,810.255,843.955,877.85
EBIT 3,608.953,472.262,868.833,431.293,953.304,113.753,584.313,605.103,626.013,647.043,668.20
Tax Rate 38.35%38.71%69.03%56.43%91.37%26.73%53.44%53.44%53.44%53.44%53.44%
EBIAT 2,225.062,128.16888.391,494.99341.093,014.131,668.961,678.641,688.381,698.171,708.02
Depreciation 1,806.592,039.552,308.602,209.192,260.992,296.572,159.122,171.652,184.242,196.912,209.65
Accounts Receivable -80.36325.52-54.76-78.76-49.181.27-8.68-8.73-8.78-8.83
Inventories --28.6451.6151.12-66.9738.77-24.99-2.38-2.39-2.40-2.42
Accounts Payable --87.26-396.0164.8982.79-3.7858.968.098.148.198.23
Capital Expenditure -243.44244.99-1,304.22516.89-145.01290.0518.6418.7518.8618.97
UFCF 4,031.644,375.613,423.112,461.203,056.025,151.504,153.383,865.973,888.393,910.953,933.63
WACC
PV UFCF 3,869.723,355.963,144.902,947.122,761.77
SUM PV UFCF 28,211.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.33
Free cash flow (t + 1) 4,090.98
Terminal Value 122,852.10
Present Value of Terminal Value 86,253.55

Intrinsic Value

Enterprise Value 114,465.17
Net Debt 30,656.60
Equity Value 83,808.57
Shares Outstanding 2,216.00
Equity Value Per Share 37.82