If you’re wondering whether Plains GP Holdings stock is still worth around $19.61, you’re not alone. This article aims to help you formulate this question clearly.
The stock’s recent returns are 2.5% in 7 days, 5.7% in 30 days, 1.0% year to date, 6.5% in 1 year, 90.3% in 3 years, and 161.5% in 5 years. These numbers naturally raise questions about how much further prices could rise or how much is at risk.
Recent coverage of Plains GP Holdings has focused on its position in U.S. energy infrastructure and how investors are considering long-term needs for transportation and storage capacity. This context is important because sentiment in the industry tends to influence how the market treats a stock like Plains GP, regardless of individual fundamentals.
Based on our research, Plains GP Holdings has a valuation score of 2 out of 6. This allows us to take a closer look at traditional valuation tools such as DCF, P/E ratios and peer comparisons, but also points to a broader way of thinking about value that we’ll discuss at the end of this article.
Plains GP Holdings scored just 2/6 on our valuation check. See what other red flags we spotted in the full valuation breakdown.
The discounted cash flow (DCF) model estimates the value of a business by projecting its future cash flows and then discounting them back to current dollars.
For Plains GP Holdings, the model used is a 2-stage free cash flow to equity method, based on free cash flow of approximately US$2.26b over the last 12 months. The analysts provided clear free cash flow forecasts out to 2029, and Simply Wall St then extrapolated further. For example, free cash flow is expected to be $1.85b in 2030, providing discounted value each year from 2026 to 2035.
Putting all these forecasts together, the DCF output suggests an estimated intrinsic value of approximately $115.04 per share. Relative to the current share price of approximately $19.61, this means that the model’s shares are undervalued by approximately 83.0%.
DCF models are sensitive to assumptions, but based on these inputs, Plains GP Holdings sifts out to be much cheaper than its cash flow forecasts suggest.
Result: Undervalued
Our discounted cash flow (DCF) analysis suggests that Plains GP Holdings is 83.0% undervalued. Track this stock in your watch list or portfolio, or discover 879 undervalued stocks based on cash flow.
PAGP discounted cash flow as of January 2026
Please see the Valuation section of our corporate report for more details on how we arrived at Plains GP Holdings’ fair value.
For profitable companies, the P/E ratio is a useful way to think about how much you pay for each dollar of earnings, because it directly links the share price to the business’s current profit stream.
Generally speaking, investors tend to accept higher P/E ratios when they expect strong earnings growth and lower risk, and lower P/E ratios when they see weaker growth or higher uncertainty, so there’s no one “right” number that works for every stock.
Plains GP Holdings currently trades at a P/E ratio of 62.59x, compared to the Oil & Gas industry average of 13.23x and the peer group average of 30.03x, so the stock trades at a higher P/E ratio than both reference points.
Simply Wall St’s fair ratio is a proprietary estimate of Plains GP Holdings’ fair price-to-earnings ratio, taking into account factors such as its earnings profile, industry, margins, market value and company-specific risks.
Because the fair ratio of 22.69x is tailored to Plains GP Holdings and not a broad industry or peer snapshot, it is intended to be more useful than a simple comparison to industry or peer averages.
Relative to this fair ratio, the current P/E ratio of 62.59x suggests the stock is trading at a higher multiple than the model suggests.
Result: Overrated
Nasdaq GS: PAGP P/E ratio as of January 2026
P/E ratios tell a story, but what if the real opportunity lies elsewhere? Explore 1,444 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is a better way to understand valuation, so let us introduce you to narrative. These are just your stories about Plains GP Holdings, tied to your own assumptions about future revenue, earnings, margins and fair value, and then compared to today’s prices on the Simply Wall St community page, where millions of investors share opinions that are automatically updated when new earnings or news comes in. For example, a narrative for Plains GP Holdings might be closer to analysts’ view of a higher fair value around $26, as it expects the company to earn $417.5 million by around September 2028 and justifies a P/E ratio closer to 16.1x. If another indicator puts more weight on risks such as crude oil demand, contract resets or capital needs, it could anchor analysts’ fair value view around $17.50. By setting and tracking a narrative that fits your perspective, you can see at a glance whether your fair value is above or below current price, and what that means for your next decision.
Do you think there’s more to the Plains GP Holdings story? Head over to our community to see what others are saying!
Nasdaq GS:PAGP 1-Year Stock Price Chart
This article from Simply Wall St is general in nature. We only use unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account 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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