ET-PI
Energy Transfer LP
$11.53
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 50.7% below fair value
You pay
$11.53
Bear
$18.71
Fair
$23.38
Bull
$28.06
Bear
$18.71
+62.2%
$1.56 × 12x P/E
Fair
$23.38
+102.8%
$1.56 × 15x P/E
Bull
$28.06
+143.4%
$1.56 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.4x
Summary
Applying a 15x P/E to adjusted EPS of $1.56, the base-case value is $23.38 per share.
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