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Is TC PipeLines LP (NYSE:TCP) Undervalued?

Thomas Auclair

TC PipeLines LP (NYSE:TCP), an energy company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine TC PipeLines’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for TC PipeLines

What’s the opportunity in TC PipeLines?

Good news, investors! TC PipeLines is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $36.36, but it is currently trading at US$26.31 on the share market, meaning that there is still an opportunity to buy now. However, given that TC PipeLines’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of TC PipeLines look like?

NYSE:TCP Future Profit Jun 12th 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a relatively muted profit growth of 9.12% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for TC PipeLines, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since TCP is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TCP for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TCP. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on TC PipeLines. You can find everything you need to know about TC PipeLines in the latest infographic research report. If you are no longer interested in TC PipeLines, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.