Is Energy Transfer LP overvalued or undervalued?

As of 6 May 2021, the valuation grade for Energy Transfer LP moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued. Key ratios include a P/E ratio of 10, an EV to EBITDA of 8.50, and a ROE of 17.90%.
In comparison to its peers, Energy Transfer LP's P/E ratio is notably lower than that of The Williams Companies, which stands at 27.64, and Kinder Morgan, which has a P/E of 21.96, both classified as very expensive. Additionally, Enterprise Products Partners LP, another peer with a P/E of 12.27, is also seen as very attractive, reinforcing the undervaluation narrative for Energy Transfer LP. Despite a recent dip in stock performance compared to the S&P 500, the company's long-term returns over 3 and 5 years have outperformed the index, further supporting its attractive valuation.