ET Valuation

Energy Transfer LP

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16.830

+0.06(0.358%)1D

ET Relative Valuation

ET'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, ET is overvalued; if below, it's undervalued.

Historical Valuation

Energy Transfer LP (ET) is now in the Fair zone, suggesting that its current forward PE ratio of 12.20 is considered Fairly compared with the five-year average of 9.38. The fair price of Energy Transfer LP (ET) is between 12.45 to 18.26 according to relative valuation methord.

Relative Value

Fair Zone

12.45-18.26

Current Price：16.83

Fair

12.20

Trailing

Forward

8.16

EV/EBITDA

Energy Transfer LP. (ET) has a current EV/EBITDA of 8.16. The 5-year average EV/EBITDA is 7.72. The thresholds are as follows: Strongly Undervalued below 6.71, Undervalued between 6.71 and 7.22, Fairly Valued between 8.23 and 7.22, Overvalued between 8.23 and 8.73, and Strongly Overvalued above 8.73. The current Forward EV/EBITDA of 8.16 falls within the Historic Trend Line -Fairly Valued range.

13.23

EV/EBIT

Energy Transfer LP. (ET) has a current EV/EBIT of 13.23. The 5-year average EV/EBIT is 12.32. The thresholds are as follows: Strongly Undervalued below 10.38, Undervalued between 10.38 and 11.35, Fairly Valued between 13.29 and 11.35, Overvalued between 13.29 and 14.26, and Strongly Overvalued above 14.26. The current Forward EV/EBIT of 13.23 falls within the Historic Trend Line -Fairly Valued range.

16.83

Energy Transfer LP. (ET) has a current PS of 16.83. The 5-year average PS is 0.52. The thresholds are as follows: Strongly Undervalued below -1.11, Undervalued between -1.11 and -0.29, Fairly Valued between 1.34 and -0.29, Overvalued between 1.34 and 2.16, and Strongly Overvalued above 2.16. The current Forward PS of 16.83 falls within the Strongly Overvalued range.

4.24

P/OCF

Energy Transfer LP. (ET) has a current P/OCF of 4.24. The 5-year average P/OCF is 4.06. The thresholds are as follows: Strongly Undervalued below 1.97, Undervalued between 1.97 and 3.01, Fairly Valued between 5.10 and 3.01, Overvalued between 5.10 and 6.15, and Strongly Overvalued above 6.15. The current Forward P/OCF of 4.24 falls within the Historic Trend Line -Fairly Valued range.

18.07

P/FCF

Energy Transfer LP. (ET) has a current P/FCF of 18.07. The 5-year average P/FCF is 7.92. The thresholds are as follows: Strongly Undervalued below 0.80, Undervalued between 0.80 and 4.36, Fairly Valued between 11.48 and 4.36, Overvalued between 11.48 and 15.03, and Strongly Overvalued above 15.03. The current Forward P/FCF of 18.07 falls within the Strongly Overvalued range.

Energy Transfer LP (ET) has a current Price-to-Book (P/B) ratio of 1.84. Compared to its 3-year average P/B ratio of 1.71 , the current P/B ratio is approximately 7.56% higher. Relative to its 5-year average P/B ratio of 1.50, the current P/B ratio is about 22.68% higher. Energy Transfer LP (ET) has a Forward Free Cash Flow (FCF) yield of approximately 9.87%. Compared to its 3-year average FCF yield of 13.07%, the current FCF yield is approximately -24.49% lower. Relative to its 5-year average FCF yield of 16.52% , the current FCF yield is about -40.26% lower.

1.84

P/B

Median3y

1.71

Median5y

1.50

9.87

FCF Yield

Median3y

13.07

Median5y

16.52

Competitors Valuation Multiple

The average P/S ratio for ET's competitors is 65.74, providing a benchmark for relative valuation. Energy Transfer LP Corp (ET) exhibits a P/S ratio of 16.83, which is -74.40% above the industry average. Given its robust revenue growth of -7.17%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Enterprise Products Partners LP

Williams Companies Inc

57.87

11.36%

70.67B

Performance Decomposition

Market capitalization of ET decreased by 12.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 11.19 to 12.98.

The secondary factor is the Revenue Growth, contributed -7.17%to the performance.

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

-7.17%

20.73B → 19.24B

Revenue Growth

-21.12%

9.61 → 7.58

Margin Expansion

16.04%

11.19 → 12.98

P/E Change

-12.25%