Is Energy Transfer (ET) Undervalued After This Year’s 16% Slide?
Energy Transfer (ET) has quietly slid this year, with the unit price down about 16% year to date even as the partnership continues to post growing revenue and double digit net income gains.
See our latest analysis for Energy Transfer.
That slide reflects fading near term momentum, with a year to date share price return of negative 15.98 percent, even though the five year total shareholder return sits at a hefty 263.47 percent.
If Energy Transfer’s pullback has you thinking about where else capital could work harder, this is a good moment to explore fast growing stocks with high insider ownership.
With Energy Transfer trading about 30 percent below analyst targets and appearing deeply discounted on some intrinsic measures, investors face a key question: is this genuine value, or is the market already baking in future growth?
Most Popular Narrative Narrative: 24% Undervalued
With Energy Transfer last closing at $16.56 against a narrative fair value near $21.67, the story hinges on durable projects and future cash generation.
Aggressive organic growth project backlog (many expected to deliver mid teen returns from 2026 onward) and a proven history of successful M&A provide strong forward visibility into distributable cash flow and earnings growth, likely supporting valuation re rating over time.
Curious what kind of revenue runway and margin lift need to materialize to justify that future cash flow story? The narrative spells out the bold assumptions driving this upgrade in profitability and the richer earnings multiple it believes the market will eventually pay. Want to see the specific growth path behind that fair value call?
Result: Fair Value of $21.67 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, weaker Bakken and Permian volumes, along with potential delays or cost overruns on large pipeline and LNG projects, could quickly challenge that optimistic growth path.
Find out about the key risks to this Energy Transfer narrative.
Build Your Own Energy Transfer Narrative
If you see the story differently or want to put your own numbers to the test, you can build a full narrative yourself in minutes: Do it your way.
A great starting point for your Energy Transfer research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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