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Kinder Morgan, Inc. (KMI) — WACC Analysis

WACC Breakdown

Kinder Morgan, Inc. (KMI) has a weighted average cost of capital (WACC) of 6.1%. The cost of equity is 8.1%, derived from a beta of 0.52 and a risk-free rate of 5.2%. The after-tax cost of debt is 1.6%. The capital structure is 69.4% equity and 30.6% debt.

Interpretation

A WACC of 6.1% suggests that the market views Kinder Morgan, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare KMI's WACC of 6.1% against industry peers to gauge its relative financing costs. A beta of 0.52 reflects the stock's volatility relative to the broader market.

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VALUATION

KMI WACC: 6.08% for Kinder Morgan, Inc.

Current inputs imply a 8.07% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Kinder Morgan, Inc. Common Stock (KMI) WACC Results
Weighted Average Cost of Capital
6.08%
Cost of Equity
8.07%
Risk-Free Rate5.19%
Beta0.52
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 69.38%($73.08B)
Debt: 30.62%($32.25B)
Equity Component
5.60%
69.38% × 8.07%
Debt Component
0.48%
30.62% × 1.58%

Kinder Morgan, Inc. (KMI) WACC in context

Kinder Morgan, Inc. (KMI) currently screens with an estimated WACC of 6.08%. That blends a 8.07% cost of equity, a 2.00% pre-tax cost of debt, and a 69.38% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What KMI WACC implies

A 6.08% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates KMI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.52 and equity accounts for 69.38% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

KMI WACC: 6.08% — Kinder Morgan, Inc. Cost of Capital (October 2026) | DeepViews