* 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 : $1,020 M
Debt : $68,620 M
EBITDA : $14,556 M
Net Debt (Debt - Cash): $67,600 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: 12.63
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:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $82,626 M
Revenue 5 Years Ago (2020-12-31): $38,954 M
Total Growth over 5 Years: 112.1%
5-Year Revenue CAGR (Historical): 16.2%
Forward 5-Year CAGR (Tapered): 11.4%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $3,650 M
Share Count 5 Years Ago (2021-12-31): $2,740 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): $1.69
Trailing 12-Month Earnings Per Share (EPS): $1.72
Average Earnings Per Share (EPS): $1.71
Dividend Per Share (DPS): $1
Payout Ratio: 79%
Dividend Yield: 6.29%
⚠️ Caution: Further research is recommended — dividend payout ratio is too high (79%).
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:
Using last 19 valid ROE years (max 20).Average ROE: 117.5%
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: $21.55
52-Week Low: $15.10
Threshold Price (15% Above 52-Week Low): $17.37
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: $73,377 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.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 26 points to above Energy Transfer LP (ET) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE 50.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE
15, Industry Based PE
12, Growth Based PE
15, ROE Based PE
50, Risk-Free Anchored PE (25% MoS)
16.03. Based on these 5 values, average assigned is
21.61. Value-Trades has assined P/E value
21.60. An average (Current Year EPS + Next Year EPS) earning per share is
$1.7066.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $36.87 (PE 21.61 × EPS $1.71)
Fair value using simple average PE × EPS: $36.87 (PE 21.61 × EPS $1.71)
Lesser of these two: $36.87
So the Final Fair Value is: $36.87
Understanding the Value-Trades P/E Blend (click to expand)
▾
What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.71
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 21.6 | $36.86 |
