WEBULL
WebtradeDownload

Kinder Morgan (KMI) Stock Still Looks Cheap After Its 157% Run

Simply Wall St · 2d ago

Kinder Morgan has delivered very strong share price gains over the past several years, so the obvious question now is whether the current US$33.97 price still lines up with the cash it can realistically generate. With the focus squarely on its pipelines and terminals continuing to throw off steady money, the discussion turns to what the company's cash flows say about that valuation today.

  • Over the past 5 years Kinder Morgan has returned 157.2%, which puts a lot of embedded optimism into the share price that needs to be weighed against its underlying cash generation.
  • Recent earnings strength and a higher dividend indicate that Kinder Morgan's existing assets and project backlog may support ongoing cash flow, but they also point to continuing capital commitments that matter for any cash flow based valuation.
  • Prefer to judge Kinder Morgan on earnings? See why Kinder Morgan's 21.9x P/E tells a different valuation story.

The stock's next move may depend on whether those cash flows, when projected out and discounted back using a Discounted Cash Flow (DCF) approach, are enough to justify where Kinder Morgan trades today.

To pressure test Kinder Morgan's cash flow story against a wider field of pipeline and income plays, compare it to 7 dividend fortresses.

Does Kinder Morgan Look Undervalued on Cash Flow?

The Discounted Cash Flow (DCF) model here is built off Kinder Morgan’s own projected cash generation to cross check the current US$33.97 share price. On the latest twelve month view, the business produced about US$2.3b of free cash flow, and the model assumes those dollars keep growing over time rather than shrinking. That path includes analyst forecasts that lift annual free cash flow into the low US$4b range by 2030, then slow the pace of expansion as Kinder Morgan matures.

Because those forecasts extend well beyond next quarter’s earnings, the gap arises when that growing cash flow stream, discounted back, lands substantially above where the equity trades today. Record Q3 2026 earnings, a higher dividend and a US$14.4b gas project backlog help explain why the cash flow line points upward in the model, even if the market price has not followed the same trajectory. To see how that difference translates into an implied value per share, run the full DCF output for Kinder Morgan. Find out what Kinder Morgan could be worth using our Discounted Cash Flow (DCF) estimate.

The Kinder Morgan Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where the Kinder Morgan DCF puzzle leaves off by spelling out which specific paths for Kinder Morgan's growth, margins and earnings would need to play out for the stock to end up worth meaningfully more or less than it trades for today on the market. Each one links its number to a clear view on how Kinder Morgan's expansion, profitability and key risks might evolve, so you can return to those assumptions as fresh information comes through on the Community page.

One of the top community narratives on Kinder Morgan: 5% undervalued

"The main factor that has to go right is that Kinder Morgan continues to secure long-term, largely take or pay contracts with creditworthy power, LNG and industrial customers…"

Discover why this Narrative puts Kinder Morgan at 5% undervalued.

One more Kinder Morgan angle worth checking before you move on

Cash flows and forecasts only tell part of the Kinder Morgan story, because the people setting priorities and the way their pay is structured can tilt outcomes in very different directions. See who runs Kinder Morgan and how they are paid.