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 84th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Plains All American Pipeline Lp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is -2.66; that's higher than merely 24.04% of US stocks in the Energy sector that have positive free cash flow.
41% of the company's capital comes from equity, which is greater than merely 24.08% of stocks in our cash flow based forecasting set.
Plains All American Pipeline Lp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Plains All American Pipeline Lp? See BTE, BKEP, VET, GLP, and ASC.