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:
Below please find a table outlining a discounted cash flow forecast for SUN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sunoco LP ranked in the 86th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for SUN, they are:
In the past 4.3 years, Sunoco LP has a compound free cash flow growth rate of 0.41%; that's better than 73.5% of cash flow producing equities in the Energy sector, where it is classified.
26% of the company's capital comes from equity, which is greater than just 14.97% 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 merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BTE, MPC, CVI, DKL, and SGU 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.