EPD
Enterprise Products Partners L.P.
$37.08
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 12.5% below fair value
You pay
$37.08
Bear
$33.90
Fair
$42.37
Bull
$50.85
Bear
$33.90
-8.6%
$2.66 × 13x P/E
Fair
$42.37
+14.3%
$2.66 × 16x P/E
Bull
$50.85
+37.1%
$2.66 × 19x P/E
Adjust Assumptions
15.9x
2.66$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
13.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (45 analysts)
$41.33
Divergence from AlphaVal
3%
Summary
Applying a 16x P/E to adjusted EPS of $2.66, the base-case value is $42.37 per share. DDM cross-check: $49.68.
Warnings
The company pays out 83% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples