Plains All American Pipeline, L.P. (PAA) Company Bio
Plains ALL American Pipeline LP engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids, natural gas, and refined products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The company was founded in 1998 and is based in Houston, Texas.
PAA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Plains All American Pipeline Lp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Plains All American Pipeline Lp ranked in the 93th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4339.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Plains All American Pipeline Lp, consider:
32% of the company's capital comes from equity, which is greater than just 18.54% of stocks in our cash flow based forecasting set.
Plains All American Pipeline Lp's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 1.96% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 19.16% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PAA, try ENB, BPMP, APY, CPG, and PDS.