Is NGL Energy Partners LP overvalued or undervalued?

As of 29 May 2025, the valuation grade for NGL Energy Partners LP has moved from risky to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 9, an EV to EBITDA of 5.74, and a Price to Book Value of 0.69, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, NGL Energy Partners LP has a P/E ratio of 10.78, which is higher than the industry average, indicating that it is priced above its competitors. Additionally, the PEG ratio of 0.05 further emphasizes the overvaluation, as it suggests that the stock is not providing sufficient growth relative to its price. Recent performance shows that while the stock has outperformed the S&P 500 over the last three years, it has underperformed year-to-date and over the past year, reinforcing the notion that the current valuation may not be justified.