Plains All American Pipeline, L.P.

NasdaqGS:PAA Stock Report

Market Cap: US$12.3b

Plains All American Pipeline Valuation

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

Below Fair Value: PAA ($17.56) is trading below our estimate of fair value ($34.87)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PAA?

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

The above table shows the Price to Earnings ratio for PAA. This is calculated by dividing PAA's market cap by their current earnings.
What is PAA's PE Ratio?
PE Ratio15.7x
EarningsUS$788.00m
Market CapUS$12.26b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PAA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.7x
WES Western Midstream Partners
9.5x-0.9%US$14.4b
DTM DT Midstream
24.8x7.2%US$10.0b
HESM Hess Midstream
17.3x54.0%US$8.0b
AM Antero Midstream
19.1x16.7%US$7.5b
PAA Plains All American Pipeline
15.7x0.3%US$12.3b

Price-To-Earnings vs Peers: PAA is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
PAA 15.7xIndustry Avg. 11.7xNo. of Companies15PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PAA is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the US Oil and Gas industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is PAA'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.

PAA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio10.9x

Price-To-Earnings vs Fair Ratio: PAA is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (10.9x).

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 PAA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.56
US$20.13
+14.6%
9.5%US$23.00US$17.00n/a18
Nov ’25US$16.39
US$20.07
+22.5%
9.3%US$23.00US$17.00n/a18
Oct ’25US$17.51
US$20.29
+15.9%
9.1%US$23.00US$17.00n/a18
Sep ’25US$17.94
US$20.44
+13.9%
9.3%US$23.00US$17.00n/a19
Aug ’25US$18.00
US$20.12
+11.8%
9.4%US$23.00US$17.00n/a19
Jul ’25US$18.03
US$19.72
+9.4%
9.3%US$23.00US$16.50n/a19
Jun ’25US$17.01
US$19.54
+14.9%
9.4%US$23.00US$16.50n/a20
May ’25US$16.93
US$18.92
+11.8%
12.1%US$23.00US$15.00n/a22
Apr ’25US$17.70
US$17.99
+1.6%
11.3%US$23.00US$14.50n/a20
Mar ’25US$16.59
US$17.75
+7.0%
10.0%US$21.00US$14.00n/a21
Feb ’25US$15.49
US$17.51
+13.1%
10.3%US$21.00US$14.00n/a21
Jan ’25US$15.15
US$17.43
+15.0%
11.2%US$21.00US$13.50n/a20
Dec ’24US$15.92
US$17.43
+9.5%
11.2%US$21.00US$13.50n/a20
Nov ’24US$15.38
US$16.55
+7.6%
10.9%US$20.00US$13.50US$16.3919
Oct ’24US$15.32
US$16.67
+8.8%
10.0%US$20.00US$14.00US$17.5118
Sep ’24US$15.45
US$16.64
+7.7%
11.3%US$21.00US$14.00US$17.9418
Aug ’24US$14.71
US$16.31
+10.8%
12.7%US$22.00US$14.00US$18.0018
Jul ’24US$14.10
US$15.92
+12.9%
10.9%US$21.00US$14.00US$18.0318
Jun ’24US$13.16
US$15.86
+20.5%
11.2%US$21.00US$14.00US$17.0118
May ’24US$12.89
US$15.69
+21.8%
11.5%US$21.00US$14.00US$16.9318
Apr ’24US$12.47
US$15.50
+24.3%
11.2%US$21.00US$14.00US$17.7019
Mar ’24US$13.15
US$15.23
+15.8%
12.1%US$21.00US$13.00US$16.5920
Feb ’24US$12.51
US$15.05
+20.3%
11.9%US$20.00US$13.00US$15.4919
Jan ’24US$11.76
US$15.05
+28.0%
12.5%US$20.00US$13.00US$15.1519
Dec ’23US$12.22
US$15.11
+23.7%
12.7%US$20.00US$13.00US$15.9218
Nov ’23US$12.23
US$14.92
+22.0%
11.3%US$19.00US$13.00US$15.3818

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

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