Energy Transfer (ET): Evaluating Valuation After Recent Share Price Pullback

Energy Transfer (ET) shares have traded lower over the past month, falling about 4%. Investors tracking the pipeline operator may be weighing recent price moves as they consider the company’s potential value and long-term fundamentals.

See our latest analysis for Energy Transfer.

While Energy Transfer’s share price has pulled back roughly 14% year-to-date, the 1-year total shareholder return stands slightly positive. This suggests that recent price softness may reflect shifting risk appetites rather than a significant change in business fundamentals. Long-term investors have still seen strong gains, with total shareholder returns comfortably up over multi-year periods, even as short-term momentum has faded from last year’s levels.

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With shares still trading at a meaningful discount to analyst price targets and long-term growth in both revenue and net income, is Energy Transfer currently undervalued, or is the market already considering its future prospects?

Most Popular Narrative: 25% Undervalued

Energy Transfer's narrative fair value stands at $22.55, well above its last close of $16.92. This gap reflects ambitious projections for future growth that contrast strongly with the recent share price behavior.

The company’s NGL export capacity expansions at the Nederland terminal and new pipeline loopings position it to benefit from increased U.S. hydrocarbon exports to international markets. These developments support sustained throughput and export revenues as global energy demand rises. Recent long-term, investment-grade customer commitments on multi-billion-dollar projects de-risk cash flows and improve visibility into earnings growth. Additionally, the buildout of vertically integrated infrastructure (such as Lake Charles LNG tied to ET pipelines) enhances both margins and return on invested capital.

Read the complete narrative.

What is the backbone driving this bold valuation? The narrative leans on multi-billion-dollar growth projects, robust margin expansion, and powerful market shifts that could propel future earnings. Interested in where these forecasts are heading and what massive assumptions underpin the analyst target? The numbers inside the full narrative could surprise even seasoned pipeline investors.

Result: Fair Value of $22.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower than expected volume growth or delays with major projects could quickly challenge these optimistic forecasts and put future revenue and margins at risk.

Find out about the key risks to this Energy Transfer narrative.

Build Your Own Energy Transfer Narrative

If you want to dig deeper, analyze the numbers firsthand, or take your own view, you can easily craft a personal thesis in just a few minutes. Do it your way

A great starting point for your Energy Transfer research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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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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