Enterprise Products Partners L.P. (EPD) Stock Valuation — PE Analysis
Oil & Gas Midstream · NYSE
Current Price
$36.78
PE Ratio (TTM)
12.8x
Intrinsic Value
$47.48
+22.5% margin of safety
COMPETITIVE MOAT
↑Extensive Integrated Infrastructure Network
EPD's vast network of pipelines, storage, and processing facilities creates significant barriers to entry. This integrated system offers customers a comprehensive solution for their midstream needs.
↑Scale and Operational Efficiency
The company's large scale allows for cost efficiencies in operations and capital deployment. This scale advantage is difficult for smaller competitors to replicate.
↑Long-Term Fee-Based Contracts
A substantial portion of EPD's revenue is secured through long-term contracts, providing stable and predictable cash flows. This insulates the business from commodity price volatility.
INVESTMENT RISKS
↓Energy Transition and Demand Shifts
The long-term shift towards renewable energy sources could reduce demand for fossil fuel transportation and processing. This poses a secular threat to the core business model.
↓Interest Rate Sensitivity
As a capital-intensive business with significant debt, EPD is sensitive to rising interest rates. Higher borrowing costs can impact profitability and dividend growth.
↓Operational and Safety Incidents
Pipeline leaks, spills, or other operational failures can lead to significant environmental damage, fines, and reputational harm. These events can disrupt operations and incur substantial costs.
Base case
EPD base case PE valuation
At a current price of $36.78, the base case PE valuation puts EPD fair value near $47.48 per share. That figure assumes 8.2% yearly earnings growth, a target PE multiple of 12.82x, and a 10% discount rate.
Intrinsic Value
$47.48
Margin of safety
+22.5%
Expected annual return
+5.2%
Base case assumptions: 8.2% annual earnings growth, 12.82x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-08.
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 EPD PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Enterprise Products Partners L.P. respond.
Open PE Calculator for EPDCompany Overview
Enterprise Products Partners L.P. delivers essential midstream energy services, connecting both producers and consumers of diverse commodities such as natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. Its operations are structured across four distinct business segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services division focuses on natural gas processing and associated NGL marketing. This segment oversees 19 natural gas processing facilities situated across Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming. Furthermore, it manages an extensive network of NGL pipelines, fractionation plants, storage sites for NGLs and related products, and NGL marine export/import terminals. Within the Crude Oil Pipelines & Services segment, the company manages crude oil pipelines, along with storage and marine terminals. A notable asset in this segment is its fleet of 255 tractor-trailer tank trucks, crucial for crude oil transportation. It also actively participates in crude oil marketing. The Natural Gas Pipelines & Services segment is dedicated to the gathering, treatment, and transmission of natural gas through its pipeline systems. This includes leasing underground salt dome natural gas storage facilities in Napoleonville, Louisiana, and owning a similar underground salt dome storage cavern in Wharton County, Texas. Natural gas marketing also forms part of its activities. Finally, the Petrochemical & Refined Products Services segment handles propylene fractionation and related marketing efforts. Its capabilities extend to butane isomerization complexes and associated deisobutanizer operations, as well as facilities for octane enhancement and the production of high-purity isobutylene. This segment additionally operates refined products pipelines and terminals, and ethylene export terminals, complementing these with refined products marketing and marine transportation solutions. Established in 1968, Enterprise Products Partners L.P. maintains its corporate headquarters in Houston, Texas.
Financial Metrics — EPD PE Stock Valuation Data
PE Ratio (TTM)
12.8x
PEG Ratio
1.72
Earnings Yield
7.81%
ROE (TTM)
21.2%
Revenue/Share (TTM)
$26.76
Dividend Yield
5.97%
Debt/Equity
1.12x
Frequently Asked Questions
What is the PE ratio of EPD?
The trailing twelve-month PE ratio of EPD reflects how much investors pay per dollar of Enterprise Products Partners L.P.'s earnings. This metric is most useful when compared to Oil & Gas Midstream peers and the company's own historical range.
Is EPD overvalued based on PE ratio?
EPD's PE of 12.8x combined with a PEG ratio of 1.72 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with 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 EPD stock using PE ratio?
To value Enterprise Products Partners L.P. using PE: (1) Compare the current PE (12.8x) against the Oil & Gas Midstream median to assess relative pricing, (2) check the PEG ratio (1.72) 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 EPD?
EPD's PEG ratio is 1.72, calculated by dividing the PE ratio (12.8x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EPD stock valuation?
PE ratio gives a quick relative read — how EPD is priced versus Oil & Gas Midstream peers. DCF provides an absolute value based on projected free cash flows. For EPD, with a strong ROE of 21.2%, 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 EPD 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 EPD with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.