Is Kinder Morgan Inc (KMI) stock trading below fair value?

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Kinder Morgan Inc (KMI) receives a low valuation ranking of 17 from Investors Observer data analysis. The proprietary ranking system focuses on the underlying health of a business by analyzing its stock price, earnings, and rate of growth. KMI is worth better than 17% of the shares based on these valuation analyzes. Investors primarily focused on buy and hold strategies will find the valuation ranking to match their goals when making investment decisions.

KMI achieves an evaluation ranking of 17 today. Find out what this means to you and get the rest of the leaderboard on KMI!

Metrics analysis

KMI has a twelve-month price-to-earnings (PE) ratio of 21.5 which puts it above the all-time average of around 15. KMI is currently trading at a low value due to investors paying more than the value of the stock in relation to its profits. . KMI’s last 12-month earnings per share (EPS) of 0.75 does not justify its share price in the market. The tracking PE ratios do not take into account the company’s projected growth rate. So some companies will have high PE ratios due to high growth recruiting more investors even though the underlying company has produced low profits so far. KMI’s 12-month PEG to growth ratio (PEG) of 4.22 is considered mediocre as the market overstates KMI relative to the company’s expected earnings growth. KMI’s PEG is derived from its forward price / earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and the stock price. Due to their integration of more fundamentals of the overall health of a company and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. ‘hui.

Summary

KMI ‘has a low valuation at its current market price due to an overvalued PEG ratio due to strong growth. KMI’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Kinder Morgan Inc (KMI) stock report.


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