Plains Group Holdings, L.P. Class A Shares representing limited partner interests (PAGP) Company Bio
Plains GP Holdings LP owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids, natural gas, and refined products in the United States and Canada. The company operates through three segments: Transportation, Facilities, and Supply and Logistics. The company was founded in 2013 and is based in Houston, Texas.
PAGP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Plains Gp Holdings Lp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Plains Gp Holdings Lp ranked in the 88th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1431.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Plains Gp Holdings Lp ended up being:
13% of the company's capital comes from equity, which is greater than just 3.79% of stocks in our cash flow based forecasting set.
Plains Gp Holdings Lp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.35. This coverage rate is greater than that of just 24.17% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Plains Gp Holdings Lp experienced a tax rate of about 39% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 94.68% of stocks generating 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 Gp Holdings Lp? See BPMP, SNMP, PDS, CELP, and PTEN.
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Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings (NYSE: PAGP) announced they will release second-quarter 2020 earnings after market close on Tuesday, August 4, 2020 and will hold a joint webcast on the same day as follows: