Energy Transfer LP (ET) Stock Valuation — PE Analysis
Oil & Gas Midstream · NYSE
Current Price
$21.19
PE Ratio (TTM)
13.2x
Intrinsic Value
$22.55
+6.0% margin of safety
COMPETITIVE MOAT
↑Extensive Midstream Infrastructure Network
ET possesses a vast network of pipelines and storage facilities. This integrated system creates significant barriers to entry for new competitors.
↑Long-Term Fee-Based Contracts
A substantial portion of ET's revenue is secured through long-term contracts. These contracts provide stable cash flows and reduce commodity price volatility.
↑Strategic Asset Locations
ET's assets are strategically located in key production basins and demand centers. This positions them to efficiently transport energy resources.
INVESTMENT RISKS
↓Energy Transition and Demand Shifts
A long-term shift away from fossil fuels could reduce demand for midstream services. This poses a secular risk to ET's core business.
↓Interest Rate Sensitivity
As a capital-intensive business, ET is sensitive to rising interest rates. Higher borrowing costs can impact profitability and expansion plans.
↓Operational and Environmental Incidents
Pipeline leaks or other operational failures can lead to significant financial and reputational damage. These events can also trigger regulatory investigations.
Base case
ET base case PE valuation
At a current price of $21.19, the base case PE valuation puts ET fair value near $22.55 per share. That figure assumes 3.3% yearly earnings growth, a target PE multiple of 12.54x, and a 10% discount rate.
Intrinsic Value
$22.55
Margin of safety
+6.0%
Expected annual return
+1.3%
Base case assumptions: 3.3% annual earnings growth, 12.54x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ET PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Energy Transfer LP respond.
Open PE Calculator for ETCompany Overview
Energy Transfer LP functions as a comprehensive provider of energy infrastructure and associated services. The company operates extensive natural gas networks, including approximately 11,600 miles of intrastate transportation pipelines and an additional 19,830 miles dedicated to interstate transport. Its natural gas storage capabilities encompass three facilities in Texas and another two spanning Texas and Oklahoma. Energy Transfer supplies natural gas to a diverse range of customers, such as electric utilities, independent power producers, local distribution companies, other marketing firms, and various industrial end-users. Beyond transportation, the firm manages substantial infrastructure for gathering, processing, treating, and conditioning natural gas and natural gas liquids (NGLs) across a broad geographic area that includes Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, Kansas, and Louisiana. This infrastructure also covers natural gas gathering systems in Ohio, and integrated natural gas gathering, oil pipeline, and oil stabilization facilities situated in South Texas. Additionally, the company provides water transport and supply services to natural gas producers in Pennsylvania. In the NGL sector, Energy Transfer possesses approximately 5,215 miles of NGL pipelines, along with facilities for NGL and propane fractionation. Its NGL storage solutions include facilities with a working capacity of around 50 million barrels (MMBbls), supplemented by additional storage assets and terminals totaling about 17 MMBbls. The company is actively involved in the transportation, terminalling, acquisition, and marketing of crude oil, as well as the distribution of refined petroleum products like gasoline, middle distillates, and motor fuels. Complementing these primary operations, Energy Transfer offers specialized services such as natural gas compression, removal of carbon dioxide and hydrogen sulfide, natural gas cooling, dehydration, and British thermal unit (BTU) management. Furthermore, its operations extend to managing coal and other natural resource properties, selling standing timber, leasing coal-related infrastructure, collecting oil and gas royalties, and generating electrical power. Established in 1996 and headquartered in Dallas, Texas, the company officially adopted its current name, Energy Transfer LP, in October 2018, having previously been known as Energy Transfer Equity, L.P.
Financial Metrics — ET PE Stock Valuation Data
PE Ratio (TTM)
13.2x
PEG Ratio
0.57
Earnings Yield
7.98%
ROE (TTM)
16.8%
Revenue/Share (TTM)
$30.35
Dividend Yield
6.35%
Debt/Equity
1.99x
Frequently Asked Questions
What is the PE ratio of ET?
The trailing twelve-month PE ratio of ET reflects how much investors pay per dollar of Energy Transfer LP's earnings. This metric is most useful when compared to Oil & Gas Midstream peers and the company's own historical range.
Is ET overvalued based on PE ratio?
ET's PE of 13.2x combined with a PEG ratio of 0.57 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Midstream, a DCF analysis may be more appropriate.
How do I value ET stock using PE ratio?
To value Energy Transfer LP using PE: (1) Compare the current PE (13.2x) against the Oil & Gas Midstream median to assess relative pricing, (2) check the PEG ratio (0.57) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ET?
ET's PEG ratio is 0.57, calculated by dividing the PE ratio (13.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ET stock valuation?
PE ratio gives a quick relative read — how ET is priced versus Oil & Gas Midstream peers. DCF provides an absolute value based on projected free cash flows. For ET, with a strong ROE of 16.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ET DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value ET with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.