Kinder Morgan Energy - Comparative Multiple Analysis

Kinder Morgan Energy (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Kinder Morgan Energy

WikiWealth compares Kinder Morgan Energy's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Kinder Morgan Energy's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Kinder Morgan Energy.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Kinder Morgan Energy's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Kinder Morgan Energy's Analysis

How does this work? The Comparative Investment Analysis determines the value of Kinder Morgan Energy by comparing Kinder Morgan Energy financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Kinder Morgan Energy.

See the Kinder Morgan Energy cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Kinder Morgan Energy.

Also, see the Kinder Morgan Energy's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Kinder Morgan Energy's valuation conclusion for a quick summary.