Name: Kinder Morgan Inc. (NYSE:KMI) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Kinder Morgan Inc., current enterprise value calculation

Current share price (P)	$15.71
No. shares of common stock outstanding	2,261,487,090
US$ in millions
Common equity (market value)¹	35,528)
Add: Preferred stock, $0.01 par value, 9.75% Series A Mandatory Convertible, $1,000 per share liquidation preference (per books)	—)
Add: Noncontrolling interests (per books)	344)
Total equity	35,872)
Add: Current portion of debt (per books)	2,477)
Add: Long-term debt, excluding current portion (per books)	31,915)
Total equity and debt	70,264)
Less: Cash and cash equivalents	185)
Less: Restricted deposits	24)
Less: Marketable securities at fair value	925)
Enterprise value (EV)	69,130)

Based on: 10-K (reporting date: 2019-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 15.71 × 2,261,487,090

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Kinder Morgan Inc., EV calculation

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Share price^1, 2	$21.81	$18.02	$17.24	$22.48	$15.62
No. shares of common stock outstanding¹	2,265,063,459	2,263,656,419	2,206,066,684	2,232,438,943	2,231,555,976
US$ in millions
Common equity (market value)³	49,401)	40,791)	38,033)	50,185)	34,857)
Add: Preferred stock, $0.01 par value, 9.75% Series A Mandatory Convertible, $1,000 per share liquidation preference (book value)	—)	—)	—)	—)	—)
Add: Noncontrolling interests (book value)	344)	853)	1,488)	371)	284)
Total equity	49,745)	41,644)	39,521)	50,556)	35,141)
Add: Current portion of debt (book value)	2,477)	3,388)	2,828)	2,696)	821)
Add: Long-term debt, excluding current portion (book value)	31,915)	33,936)	35,015)	37,354)	42,406)
Total equity and debt	84,137)	78,968)	77,364)	90,606)	78,368)
Less: Cash and cash equivalents	185)	3,280)	264)	684)	229)
Less: Restricted deposits	24)	51)	62)	103)	60)
Less: Marketable securities at fair value	925)	—)	—)	—)	—)
Enterprise value (EV)	83,003)	75,637)	77,038)	89,819)	78,079)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Kinder Morgan Inc. Annual Report.

³ 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 21.81 × 2,265,063,459

An analysis of the financial valuation from 2015 to 2019 reveals a period of significant volatility in both market capitalization and overall enterprise value. The company experienced a notable peak in valuation in 2016, followed by a contraction period through 2018, and a subsequent recovery by the end of 2019.

Enterprise Value (EV) Trends: Enterprise value exhibited a non-linear trajectory, rising from US$ 78,079 million in 2015 to a peak of US$ 89,819 million in 2016. A downward trend followed, with EV declining to US$ 77,038 million in 2017 and reaching a period low of US$ 75,637 million in 2018. A recovery phase occurred in 2019, with the value increasing to US$ 83,003 million.
Equity Valuation and Market Correlation: The market value of common equity closely mirrored the movements of the total enterprise value. A sharp increase was observed between 2015 and 2016, where market value rose from US$ 34,857 million to US$ 50,185 million. This was followed by a correction in 2017 to US$ 38,033 million. By 2019, the market value regained momentum, climbing to US$ 49,401 million. Total equity figures remained highly aligned with market values throughout the period, suggesting a strong correlation between book value and market perception.
Capital Structure and Total Obligations: Total equity and debt peaked in 2016 at US$ 90,606 million, consistent with the expansion of the enterprise value. The relative stability between the Total Equity and Debt figures and the Enterprise Value suggests that fluctuations in EV were driven primarily by changes in equity market valuation rather than drastic shifts in the underlying debt structure. The convergence of these figures indicates a consistent relationship between the company's total capital employed and its overall enterprise valuation.

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Kinder Morgan Inc. (NYSE:KMI)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)