Is Kinder Morgan, Inc. overvalued or undervalued?

As of 16 April 2025, Kinder Morgan, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 22, which is significantly higher than the industry average, and an EV to EBITDA ratio of 13.99. Additionally, the PEG ratio stands at 1.96, suggesting that the stock is priced high relative to its growth expectations.
In comparison to its peers, Kinder Morgan's valuation appears unfavorable. For instance, Enterprise Products Partners LP, which is rated very attractive, has a P/E ratio of 12.27 and an EV to EBITDA of 11.01, while Energy Transfer LP also shows a compelling valuation with a P/E of 9.73. Despite Kinder Morgan's strong recent stock performance, with a 1-year return of 42.52% compared to the S&P 500's 10.26%, the current valuation metrics indicate that the stock is not justified at its current price level.