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 48.51% in comparison to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Plains All American Pipeline Lp are:

• PAA's market cap is about 6 billion US dollars -- this puts the stock in the large-sized market cap class, and its dividend yield is greater than 97.37% of dividend yielding stocks in the same market cap class.
• With a market cap of roughly $6 billion, PAA is in the large-sized market cap class; here, it has a lower equity discount rate than 4.69% of stocks.
• Beta tells us how volatile a stock's price is relative to the broader equity index; as for PAA, approximately 2.97% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

PAA Dividends vs. Peers