PAA Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. As for PAA, the DDM model generated by StockNews estimates a return of positive 116.03% in comparison to its current price. To help understand and contextualize the model's evaluation of PAA, investors may wish to consider are:

• In comparison to stocks we observe that provide shareholders with a dividend, Plains All American Pipeline Lp produces a dividend yield 12.12% -- which falls in the top 3.84999999999999%.
• Plains All American Pipeline Lp's market cap of $5 billion US dollars puts it in the large-sized market cap class; here, it has a lower equity discount rate than 4.78% of stocks.
• A stock's beta generally indicates its volatility relative to the broader equity market; for Plains All American Pipeline Lp, its beta is lower than 3.18% of dividend issuing stocks we observed.

PAA Dividends vs. Peers