PAA Valuation

Plains All American Pipeline LP

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17.370

-0.11(-0.629%)1D

Overview
Forecast
Valuation
Earnings

PAA Relative Valuation

PAA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PAA is overvalued; if below, it's undervalued.

Historical Valuation

Plains All American Pipeline LP (PAA) is now in the Fair zone, suggesting that its current forward PE ratio of 10.17 is considered Fairly compared with the five-year average of 10.22. The fair price of Plains All American Pipeline LP (PAA) is between 17.13 to 22.61 according to relative valuation methord.

Relative Value

Fair Zone

17.13-22.61

Current Price：17.37

Fair

10.17

Trailing

Forward

9.48

EV/EBITDA

Plains All American Pipeline LP. (PAA) has a current EV/EBITDA of 9.48. The 5-year average EV/EBITDA is 8.91. The thresholds are as follows: Strongly Undervalued below 7.84, Undervalued between 7.84 and 8.38, Fairly Valued between 9.45 and 8.38, Overvalued between 9.45 and 9.99, and Strongly Overvalued above 9.99. The current Forward EV/EBITDA of 9.48 falls within the Overvalued range.

14.51

EV/EBIT

Plains All American Pipeline LP. (PAA) has a current EV/EBIT of 14.51. The 5-year average EV/EBIT is 15.76. The thresholds are as follows: Strongly Undervalued below 12.34, Undervalued between 12.34 and 14.05, Fairly Valued between 17.47 and 14.05, Overvalued between 17.47 and 19.17, and Strongly Overvalued above 19.17. The current Forward EV/EBIT of 14.51 falls within the Historic Trend Line -Fairly Valued range.

0.25

Plains All American Pipeline LP. (PAA) has a current PS of 0.25. The 5-year average PS is 0.20. The thresholds are as follows: Strongly Undervalued below 0.11, Undervalued between 0.11 and 0.15, Fairly Valued between 0.24 and 0.15, Overvalued between 0.24 and 0.28, and Strongly Overvalued above 0.28. The current Forward PS of 0.25 falls within the Overvalued range.

4.43

P/OCF

Plains All American Pipeline LP. (PAA) has a current P/OCF of 4.43. The 5-year average P/OCF is 4.18. The thresholds are as follows: Strongly Undervalued below 2.87, Undervalued between 2.87 and 3.53, Fairly Valued between 4.84 and 3.53, Overvalued between 4.84 and 5.50, and Strongly Overvalued above 5.50. The current Forward P/OCF of 4.43 falls within the Historic Trend Line -Fairly Valued range.

7.79

P/FCF

Plains All American Pipeline LP. (PAA) has a current P/FCF of 7.79. The 5-year average P/FCF is 7.89. The thresholds are as follows: Strongly Undervalued below 0.95, Undervalued between 0.95 and 4.42, Fairly Valued between 11.37 and 4.42, Overvalued between 11.37 and 14.84, and Strongly Overvalued above 14.84. The current Forward P/FCF of 7.79 falls within the Historic Trend Line -Fairly Valued range.

Plains All American Pipeline LP (PAA) has a current Price-to-Book (P/B) ratio of 1.59. Compared to its 3-year average P/B ratio of 1.40 , the current P/B ratio is approximately 13.89% higher. Relative to its 5-year average P/B ratio of 1.21, the current P/B ratio is about 31.37% higher. Plains All American Pipeline LP (PAA) has a Forward Free Cash Flow (FCF) yield of approximately 16.72%. Compared to its 3-year average FCF yield of 18.79%, the current FCF yield is approximately -11.04% lower. Relative to its 5-year average FCF yield of 18.06% , the current FCF yield is about -7.42% lower.

1.59

P/B

Median3y

1.40

Median5y

1.21

16.72

FCF Yield

Median3y

18.79

Median5y

18.06

Competitors Valuation Multiple

The average P/S ratio for PAA's competitors is 3.62, providing a benchmark for relative valuation. Plains All American Pipeline LP Corp (PAA) exhibits a P/S ratio of 0.25, which is -93.20% above the industry average. Given its robust revenue growth of -16.58%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PAA.O

Plains All American Pipeline LP

Plains GP Holdings LP

Western Midstream Partners LP

Antero Midstream Corp

Performance Decomposition

Market capitalization of PAA decreased by 3.18% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 21.59 to 26.42.

The secondary factor is the Margin Expansion, contributed -8.97%to the performance.

Overall, the performance of PAA in the past 1 year is driven by P/E Change. Which is more unsustainable.

-16.58%

12.76B → 10.64B

Revenue Growth

-8.97%

2.34 → 2.13

Margin Expansion

22.37%

21.59 → 26.42

P/E Change

-3.18%