Pembina Pipeline Corporation

TSX:PPL Stock Report

Market Cap: CA$28.7b

Pembina Pipeline Valuation

Is PPL 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 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPL (CA$49.2) is trading below our estimate of fair value (CA$73.94)

Significantly Below Fair Value: PPL 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?

Other financial metrics that can be useful for relative valuation.

PPL 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/Revenue4.5x
Enterprise Value/EBITDA15.2x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.9x
TRP TC Energy
20.1x15.7%CA$54.2b
ENB Enbridge
18.3x9.6%CA$101.1b
KEY Keyera
23.2x13.9%CA$8.3b
GEI Gibson Energy
22.2x17.8%CA$3.7b
PPL Pembina Pipeline
16.6x4.7%CA$28.7b

Price-To-Earnings vs Peers: PPL is good value based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PPL is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the Canadian Oil and Gas industry average (11.5x).


Price to Earnings Ratio vs Fair Ratio

What is PPL'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 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.6x
Fair PE Ratio12.9x

Price-To-Earnings vs Fair Ratio: PPL is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).


Analyst Price Targets

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

The above table shows the analyst PPL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$49.20
CA$54.36
+10.5%
4.0%CA$58.00CA$51.00n/a14
Jun ’25CA$50.63
CA$54.56
+7.8%
3.9%CA$58.00CA$51.00n/a16
May ’25CA$47.74
CA$52.32
+9.6%
8.1%CA$58.00CA$39.50n/a17
Apr ’25CA$48.11
CA$51.85
+7.8%
7.9%CA$58.00CA$39.50n/a17
Mar ’25CA$47.49
CA$51.88
+9.2%
7.2%CA$58.00CA$41.00n/a16
Feb ’25CA$46.15
CA$51.47
+11.5%
7.2%CA$58.00CA$41.00n/a15
Jan ’25CA$45.62
CA$50.97
+11.7%
7.8%CA$58.00CA$41.00n/a15
Dec ’24CA$45.67
CA$50.20
+9.9%
7.6%CA$58.00CA$41.00n/a15
Nov ’24CA$42.88
CA$47.50
+10.8%
12.3%CA$53.00CA$30.00n/a15
Oct ’24CA$40.84
CA$50.25
+23.0%
7.4%CA$58.00CA$41.00n/a14
Sep ’24CA$42.51
CA$50.22
+18.1%
7.0%CA$58.00CA$41.00n/a16
Aug ’24CA$41.33
CA$51.35
+24.3%
6.8%CA$58.00CA$41.00n/a17
Jul ’24CA$41.65
CA$51.47
+23.6%
6.8%CA$58.00CA$41.00n/a17
Jun ’24CA$41.51
CA$51.35
+23.7%
6.9%CA$58.00CA$41.00CA$50.6317
May ’24CA$44.60
CA$51.29
+15.0%
6.9%CA$58.00CA$41.00CA$47.7417
Apr ’24CA$43.78
CA$51.59
+17.8%
6.9%CA$58.00CA$41.00CA$48.1117
Mar ’24CA$45.39
CA$51.47
+13.4%
7.2%CA$58.00CA$41.00CA$47.4917
Feb ’24CA$47.03
CA$50.67
+7.7%
8.5%CA$58.00CA$37.00CA$46.1518
Jan ’24CA$45.96
CA$50.24
+9.3%
8.6%CA$58.00CA$37.00CA$45.6217
Dec ’23CA$49.14
CA$49.76
+1.3%
8.9%CA$58.00CA$37.00CA$45.6717
Nov ’23CA$44.54
CA$49.76
+11.7%
8.7%CA$58.00CA$37.00CA$42.8817
Oct ’23CA$41.96
CA$49.82
+18.7%
13.2%CA$56.00CA$30.00CA$40.8417
Sep ’23CA$46.34
CA$50.12
+8.2%
13.4%CA$56.00CA$30.00CA$42.5117
Aug ’23CA$48.89
CA$49.69
+1.6%
14.2%CA$56.00CA$30.00CA$41.3316
Jul ’23CA$45.50
CA$52.00
+14.3%
10.6%CA$60.00CA$37.00CA$41.6516
Jun ’23CA$51.77
CA$51.59
-0.4%
10.2%CA$60.00CA$37.00CA$41.5117

Analyst Forecast: Target price is less than 20% higher than the current share price.


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