KMI operates a vast, integrated network of pipelines and terminals. This critical infrastructure is difficult and time-consuming to replicate, providing a significant barrier to entry for competitors.

↑Fee-Based Revenue Model

A substantial portion of KMI's revenue is derived from long-term, fee-based contracts. This insulates the company from direct commodity price volatility, ensuring more predictable cash flows.

↑Strategic Project Backlog

KMI's ongoing expansion projects and growing backlog of opportunities enhance its ability to capture future demand. This positions the company to benefit from rising energy needs.

INVESTMENT RISKS

↓Regulatory and Environmental Hurdles

Pipeline projects face significant regulatory scrutiny and potential environmental opposition. Delays or cancellations due to these factors can impact growth and profitability.

↓Interest Rate Sensitivity

As a capital-intensive business, KMI relies on debt financing. Rising interest rates can increase borrowing costs, potentially impacting dividend growth and share buybacks.

↓Shifting Energy Landscape

While KMI benefits from current energy demand, a rapid transition to renewable energy sources could eventually reduce the long-term need for fossil fuel infrastructure.

Base case

KMI base case PE valuation

A base case PE valuation for KMI estimates a fair value of about $34.98 per share, against a current price of $31.94. The model assumes 7.6% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.

Intrinsic Value

$34.98

Margin of safety

+8.7%

Expected annual return

+1.8%

Base case assumptions: 7.6% annual earnings growth, 21x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the KMI PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Kinder Morgan, Inc. respond.

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Company Overview

Kinder Morgan, Inc. operates as a leading energy infrastructure company across North America. Its extensive operations are categorized into four primary business segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The Natural Gas Pipelines segment manages a vast network of interstate and intrastate natural gas pipelines, along with underground storage systems. This includes natural gas gathering systems, processing and treatment facilities, natural gas liquids fractionation plants, transportation systems, and infrastructure for liquefied natural gas liquefaction and storage. Within its Products Pipelines segment, the company owns and operates pipelines designed for refined petroleum products, crude oil, and condensate, supported by associated product terminals and facilities for petroleum pipeline transmix. The Terminals segment involves the ownership and operation of both liquid and bulk terminals that are utilized for storing and handling a wide array of commodities, such as gasoline, diesel fuel, various chemicals, ethanol, metals, and petroleum coke. This division also includes the ownership of tankers. Lastly, the CO2 segment is dedicated to the production, transportation, and marketing of carbon dioxide, primarily for enhanced oil recovery from mature oil fields. This segment also holds interests in or operates oil fields and gasoline processing plants, oversees a crude oil pipeline system located in West Texas, and manages renewable natural gas (RNG) and liquefied natural gas (LNG) facilities. In total, Kinder Morgan owns and operates approximately 83,000 miles of pipelines and 143 terminals. The company, initially named Kinder Morgan Holdco LLC, officially changed its name to Kinder Morgan, Inc. in February 2011. Founded in 1936, its corporate headquarters are situated in Houston, Texas.

Financial Metrics — KMI PE Stock Valuation Data

PE Ratio (TTM)

21.4x

PEG Ratio

0.75

Earnings Yield

4.66%

ROE (TTM)

10.7%

Revenue/Share (TTM)

$7.88

Dividend Yield

3.68%

Debt/Equity

1.02x

Frequently Asked Questions

What is the PE ratio of KMI?

The trailing twelve-month PE ratio of KMI reflects how much investors pay per dollar of Kinder Morgan, Inc.'s earnings. This metric is most useful when compared to Oil & Gas Midstream peers and the company's own historical range.

Is KMI overvalued based on PE ratio?

KMI's PE of 21.4x combined with a PEG ratio of 0.75 provides a growth-adjusted perspective. A PEG below 1.0 suggests KMI may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Midstream, a DCF analysis may be more appropriate.

How do I value KMI stock using PE ratio?

To value Kinder Morgan, Inc. using PE: (1) Compare the current PE (21.4x) against the Oil & Gas Midstream median to assess relative pricing, (2) check the PEG ratio (0.75) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of KMI?

KMI's PEG ratio is 0.75, calculated by dividing the PE ratio (21.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for KMI stock valuation?

PE ratio gives a quick relative read — how KMI is priced versus Oil & Gas Midstream peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See KMI DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

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P/E and DCF value KMI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.