ETNEUTRAL

EV/EBITDA

9.8x

Higher than 67% of Energy sector peers

Updated 120h ago

Sector Performance

67th percentile

9.8x

Sector Median

6.7x

Sector Avg

9.8x

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Deep Analysis

Energy Transfer LP's current EV/EBITDA of 9.8x means that investors are paying $9.80 for every $1 of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA), a common measure of valuation.

This is well above the sector median of 6.4x, placing the stock in the 72nd percentile among energy peers — meaning it is more expensive than 72% of them. While the year-over-year change is not available, the metric has increased 12.2% quarter-over-quarter, from 8.7x to 9.8x. A valuation already above the peer median, combined with a rising trend, suggests that the stock's price is outpacing its earnings growth, which can signal higher risk if earnings fail to catch up. This does not necessarily indicate an imminent decline, but it does reduce the margin of safety for new investors. The elevated and climbing EV/EBITDA supports the NEUTRAL verdict by highlighting that the stock is not a clear bargain, yet the uptrend may reflect market optimism that could keep the stock range-bound.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ET?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ET's EV/EBITDA compare to its sector?

ET's EV/EBITDA of 9.8x compares to a Energy sector median of 6.7x, placing it in the 67th percentile.

Who are ET's closest peers by EV/EBITDA?

The closest Energy peers by EV/EBITDA include: DEN (6.4x), CNQ (7.1x), SM (7.1x), PXD (6.2x), RRC (5.7x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.