Kinder Morgan Inc (KMI) is overvalued and Cheniere Energy Inc (LNG) is undervalued.
Against our estimates of intrinsic value, LNG trades at the wider discount: a margin of safety of +50%, against -21% for KMI.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 7.6% (average of 3 methods) values the shares at $27.53; the price of $33.39 is 21% above that value, and 81% of that value comes from beyond year five.
Leak Score 42/100 on 12 of 12 signals
Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $574.99; the price of $286.60 is 50% below that value, and 74% of that value comes from beyond year five.
Leak Score 73/100 on 11 of 12 signals
| Metric | KMI | LNG |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $33.39 | $286.60 |
| Intrinsic value | $27.53 | $574.99 |
| Margin of safety | -21% | +50% |
| Leak Score | 42/100 (12/12) | 73/100 (11/12) |
| Market cap | $74.4B | $59.2B |
| Revenue growth, 5 years | 7.9% | 15.9% |
| Operating margin | 29.6% | 30.2% |
| Net margin | 19.3% | 13.2% |
| Return on equity | 11.1% | 45.1% |
| Debt to equity | 1.02 | 4.29 |
| P/E | 21.5x | 21.3x |
| Forward P/E | 21.7x | 16.2x |
| P/B | 2.4x | 9.6x |
| Dividend yield | 3.6% | 0.8% |