* Note: Prices are in Million (M) USD.
Description:
Energy Transfer LP offers energy related services. The company is headquartered in Dallas, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $312 M
Debt : $59,752 M
EBITDA : $14,583 M
Net Debt (Debt - Cash): $59,440 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: ENERGY & TRANSPORTATION
Industry: NATURAL GAS TRANSMISSION
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.88
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $5,341 M
Average Revenue: $37,866 M
Revenue Converted To Free Cash FLow(%): 14%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 55.72%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $82,671 M
Revenue 4 Years Ago (2020-12-31): $38,954 M
Last 5 Years Average Revenue Growth: 22%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $3,421 M
Share Count 5 Years Ago (2020-12-31): $2,696 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.77
Trailing 12-Month Earnings Per Share (EPS): $1.50
Average Earnings Per Share (EPS): $1.64
Dividend Per Share (DPS): $1
Payout Ratio: 79%
Dividend Yield: 7%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 143%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $18
52-Week Low: $14
Threshold Price (15% Above 52-Week Low): $16
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $59,919 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above Energy Transfer LP (ET) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 14, Fair Value PE 15, Industry Based PE is 12 and Growth based PE is 15. Based on these all values average assigned is 14.00.
Value-Trades has assined P/E value 14.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.635.
The fair value of Energy Transfer LP (ET) stock should be (14.00 x $1.635) = $22.89
