Energy Transfer (ET): Exploring Valuation After Recent Share Price Weakness

Energy Transfer (ET) has been drawing attention from investors, particularly following a stretch of underperformance over the past month and past 3 months. The stock’s moves have led some to reconsider how its longer-term fundamentals compare with recent trading trends.

See our latest analysis for Energy Transfer.

Over the past year, Energy Transfer's share price has faced notable headwinds, sliding 16.6% year-to-date, while the one-year total shareholder return stands at -8.9%. This comes despite a multi-year run that saw total returns reach 68% over three years and 286% over five. After the latest price stumble, momentum appears to be fading for now, even as the underlying business continues to show signs of growth in key segments.

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Given these contrasting trends, the key question is whether Energy Transfer’s recent pullback has left shares undervalued and created a potential buying window, or if the market is already reflecting expectations for future growth.

Most Popular Narrative: 24.9% Undervalued

With Energy Transfer’s last close at $16.43 and the popular narrative suggesting a fair value near $21.87, the gap between price and projected worth stands out. The spotlight is now on the next chapter for this high-yielding pipeline giant.

Expanding pipeline and export infrastructure, alongside strong customer commitments, positions Energy Transfer to capture rising domestic and global energy demand with de-risked revenue streams. Proven success in growth projects and mergers enhances earnings visibility, margin improvement, and long-term upside as natural gas remains a key transitional energy source.

Read the complete narrative.

What is powering this bullish outlook? It is not just oil and gas. The narrative is built on optimistic projections about revenue growth, margin gains, and how future profits could command a premium multiple. Want to know the formulas and bold assumptions driving this double-digit upside? Find out what could move the price higher by reading the full story.

Result: Fair Value of $21.87 (UNDERVALUED)

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

However, execution delays on large midstream projects or weaker than expected growth in key crude and gas volumes could quickly shift sentiment regarding Energy Transfer's upside.

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

Build Your Own Energy Transfer Narrative

If you have a different perspective or prefer to examine the details, you can quickly construct your personal outlook and test your thesis in just a few 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.

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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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