Is Hess Midstream LP overvalued or undervalued?

As of 25 April 2018, Hess Midstream LP's valuation grade has moved from very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 12, an EV to EBITDA of 10.32, and a remarkable ROE of 109.51%, which highlights its strong profitability relative to equity.
In comparison to its peers, Hess Midstream LP's P/E ratio of 12 is higher than Permian Resources Corp. at 9.17 and Matador Resources Co. at 6.37, but it reflects a more favorable valuation when considering its growth potential. The EV to EBITDA ratio also positions Hess favorably against peers like Southwestern Energy Co., which has an EV to EBITDA of 9.14, suggesting that Hess is better valued in terms of earnings before interest, taxes, depreciation, and amortization. Despite a recent decline in stock price compared to the S&P 500, Hess Midstream LP's strong financial metrics support its undervalued status in the current market.