If you’re wondering if Plains GP Holdings shares still offer value at around US$19.61, you’re not alone. This article is designed to help you formulate that question clearly.
The stock has a recent return of 2.5% over 7 days, 5.7% over 30 days, 1.0% year to date, 6.5% over 1 year, 90.3% over 3 years and 161.5% over 5 years. These figures naturally raise questions about how much more head or risk can be priced in.
Recent coverage around Plains GP Holdings has centered on its position in the US energy infrastructure space and how investors are thinking about long-term demand for transportation and storage capacity. This context is important because sentiment across the sector often influences how the market treats stocks like Plains GP, regardless of individual fundamentals.
On our checks, Plains GP Holdings has a valuation score of 2 out of 6. This establishes a closer look at traditional valuation tools such as discounted cash flow, multiples and peer comparisons, and also indicates a broader way of thinking about value that we will return to at the end of the article.
Plains GP Holdings scored just 2/6 on our assessment checks. See what other red flags we found in the full assessment breakdown.
A Discounted Cash Flow Model, or DCF, estimates what a business might be worth by projecting its future cash flows and then discounting them back to today’s dollars.
For Plains GP Holdings, the model used is a 2-Stage Free Cash Flow to Equity approach, based on trailing twelve month free cash flow of approximately $2.26b. Analysts provide explicit estimates of free cash flow through 2029, and Simply Wall St then extrapolates further. For example, free cash flow for 2030 is projected at $1.85b, with discounted values provided for each year from 2026 to 2035.
Rolling all those projections together, the DCF output suggests an estimated intrinsic value of about $115.04 per share. Against the current share price of around $19.61, this implies the stock screens as around 83.0% undervalued on this model.
DCF models are sensitive to assumptions, but on these inputs Plains GP Holdings screens as materially cheaper than its liquidity projection suggests.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests that Plains GP Holdings is undervalued by 83.0%. Track this in your watchlist or portfolio, or discover 879 more undervalued stocks based on cash flows.
PAGP Discounted Cash Flow in January 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Plains GP Holdings.
For profitable companies, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings, because it links the share price directly to the current profit stream of the business.
In general, investors tend to accept a higher P/E when they expect stronger earnings growth and lower risk, and a lower P/E when they see weaker growth or higher uncertainty, so there is no single “right” number that fits every stock.
Plains GP Holdings currently trades on a P/E of 62.59x, compared to an Oil & Gas industry average of 13.23x and a peer group average of 30.03x, so the shares are on a higher multiple than both benchmarks.
Simply Wall St’s Fair Ratio is a proprietary estimate of what P / E can be reasonable for Plains GP Holdings, given factors such as its earnings profile, the industry, the profit margin, the market value and the specific risks of the company.
Because the Fair Ratio of 22.69x is tailored to Plains GP Holdings rather than a broad sector or peer picture, it aims to be more useful than a simple comparison against industry or peer averages.
Slightly against this Fair Ratio, the current P/E of 62.59x suggests that the shares are trading on a richer multiple than the model implies.
Result: VALUED ZERO
NasdaqGS:PAGP P/E Ratio as of January 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand assessment, so let us introduce you to Narratives. These are simply your story about Plains GP Holdings, linked to your assumptions for revenue, earnings, future margins and fair value, then compared to today’s price inside the Simply Wall St Community page, where millions of investors share perspectives that update automatically when new earnings or news arrive. For example, one Plains GP Holdings Narrative can lean closer to the analyst’s fair value opinions higher around US$26 because it expects the company to reach a profit of US$417.5m by around September 2028 and justify a P/E close to 16.1x. Another could anchor closer to the analyst’s fair value views lower around US$17.5 if it puts more weight on risks such as crude oil demand, contract resets or capital needs. By setting up and following the Narrative that fits your view, you can see at a glance whether your fair value is above or below the current price and what that means for your next decision.
Do you think there is more to the story for Plains GP Holdings? Head over to our Community to see what others are saying!
NasdaqGS: PAGP One Year Stock Price Chart
This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not consider the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
Companies discussed in this article include PAGP.
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