Energy Transfer: Still Discounted According To Graham

Summary:

  • Energy Transfer LP stock is still a buy in my view despite a price near multi-year peak levels.
  • It has a projected EPS annual growth rate of 7%+, which I think is feasible given catalysts like the acquisition of Crestwood Equity Partners.
  • Valuation metrics, including Graham’s approach, still suggest that ET is undervalued compared to its market price.
  • At the same time, an ~8% dividend provides nonnegligible downside protection in the case of a market downturn.

Prices Comparison

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ET is a still a buy

My last article on Energy Transfer LP (NYSE:ET), published in Oct 2023, argued for a strong buy thesis. The argument was largely built on the potential for oil


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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