Pembina Pipeline Valuation

Is PPL.PRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PPL.PRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPL.PRC (CA$20.55) is trading below our estimate of fair value (CA$40.88)

Significantly Below Fair Value: PPL.PRC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPL.PRC?

Key metric: As PPL.PRC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PPL.PRC. This is calculated by dividing PPL.PRC's market cap by their current earnings.
What is PPL.PRC's PE Ratio?
PE Ratio	18.9x
Earnings	CA$1.85b
Market Cap	CA$34.47b

PPL.PRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.1x
Enterprise Value/EBITDA	15.9x
PEG Ratio	4.5x

Price to Earnings Ratio vs Peers

How does PPL.PRC's PE Ratio compare to its peers?

The above table shows the PE ratio for PPL.PRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.6x
TRP TC Energy	14.3x	-2.3%	CA$71.4b
ENB Enbridge	21.1x	9.0%	CA$130.3b
KEY Keyera	24.4x	5.2%	CA$10.7b
GEI Gibson Energy	18.5x	9.9%	CA$3.8b
PPL.PRC Pembina Pipeline	18.9x	4.2%	CA$34.5b

Price-To-Earnings vs Peers: PPL.PRC is good value based on its Price-To-Earnings Ratio (18.9x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

How does PPL.PRC's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap
HAM Highwood Asset Management	1.3x	-43.9%	US$66.82m
ALPS.U Alpine Summit Energy Partners	1x	n/a	US$24.02m
KUB.H Carcetti Capital	0.7x	n/a	US$5.82m
GCOM Green Shift Commodities	1.4x	n/a	US$4.44m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PPL.PRC is expensive based on its Price-To-Earnings Ratio (18.9x) compared to the Canadian Oil and Gas industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is PPL.PRC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPL.PRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.9x
Fair PE Ratio	14.1x

Price-To-Earnings vs Fair Ratio: PPL.PRC is expensive based on its Price-To-Earnings Ratio (18.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Ovintiv

US$11.9b

Explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada.

OVV

US$65.13

4.4%

6.0%

LNG Energy Group

US$13.8m

Focuses on the acquisition and development of natural gas production and exploration assets in Latin America.

LNGE

US$0.12

9.1%

-62.5%

Source Energy Services

CA$244.9m

Engages in the production and distribution of Northern White frac sand used primarily in oil and gas exploration and production in Canada and the United States.

SHLE

CA$17.85

14.3%

142.5%