Sunoco LP Common Units representing limited partner interests (SUN) Company Bio
Sunoco LP engages in the wholesale distribution and retail sale of motor fuels primarily in Texas, New Mexico, Oklahoma, Louisiana, Kansas, Maryland, Virginia, Tennessee, Georgia, and Hawaii. It operates through two segments, Wholesale and Retail. The company was founded in 2014 and is based in Houston, Texas.
SUN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sunoco LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sunoco LP ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 328.33%. In terms of the factors that were most noteworthy in this DCF analysis for SUN, they are:
The compound growth rate in the free cash flow of Sunoco LP over the past 4.52 years is 0.37%; that's higher than 69.07% of free cash flow generating stocks in the Energy sector.
34% of the company's capital comes from equity, which is greater than merely 17.4% of stocks in our cash flow based forecasting set.
Sunoco LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DKL, FRO, ENLC, SPN, and CVE can be thought of as valuation peers to SUN, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") announced today that Thomas R. Miller, Chief Financial Officer, will retire from Sunoco GP LLC, the general partner of Sunoco LP, as of September 1, 2020.