DCF Valuation
Plains All American Pipeline LP (PAA) DCF Valuation — Is PAA undervalued?
The estimated DCF fair value of one Plains All American Pipeline LP (PAA) share is $171.93. Compared to the current market price of $23.17, the stock is undervalued by 642.0%.
DCF fair value
$171.93
Market price
$23.17
Upside / downside
+642.0%
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Plains All American Pipeline LP (PAA) DCF valuation FAQ
What is the DCF fair value of Plains All American Pipeline LP (PAA)?
The discounted-cash-flow model estimates the intrinsic fair value of one Plains All American Pipeline LP (PAA) share at $171.93, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Plains All American Pipeline LP (PAA) overvalued or undervalued?
Against the current market price of $23.17, the DCF fair value of $171.93 implies PAA is undervalued by 642.0%.
How is the PAA DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Plains All American Pipeline LP's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Plains All American Pipeline LP files a new quarterly or annual report.
How this PAA valuation is built
The model projects ten years of Plains All American Pipeline LP's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Plains All American Pipeline LP's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.
WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.
The market price refreshes daily; the DCF fair value updates when Plains All American Pipeline LP files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.