How Does Kinder Morgan’s Current Valuation Compare?



Valuation multiple

Kinder Morgan (KMI) is currently trading at a TTM (trailing-12-month) EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of nearly 14x. This is lower than Williams Companies’ (WMB), Enterprise Products Partners’ (EPD), and Energy Transfer Equity’s (ETE) multiples of 17x, 15x, and 17x, respectively. KMI’s lower multiple points towards a possible undervaluation.

The above graph compares KMI’s and peers’ TTM and forward EV-to-EBITDA multiples. EPD’s, KMI’s, and WMB’s forward multiples are lower than their TTM multiples, which indicates that EBITDA could grow for these companies over the next two quarters.

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