Magellan Midstream Partners L.P. Limited Partnership (MMP) Company Bio
Magellan Midstream Partners LP engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates in three segments: Refined Products, Crude Oil, and Marine Storage. The company was founded in 2000 and is based in Tulsa, Oklahoma.
MMP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MMP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Magellan Midstream Partners LP ranked in the 20th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 59.17%. As for the metrics that stood out in our discounted cash flow analysis of Magellan Midstream Partners LP, consider:
Its compound free cash flow growth rate, as measured over the past 5.54 years, is -0.06% -- higher than just 20.7% of stocks in our DCF forecasting set.
Magellan Midstream Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 21.34% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Magellan Midstream Partners LP has a reliance on debt greater than only 22.52% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DWSN, FTI, CEO, FLMN, and GBR can be thought of as valuation peers to MMP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.