Is NGL Energy Partners LP overvalued or undervalued?

As of 28 August 2025, the valuation grade for NGL Energy Partners LP has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 9, a Price to Book Value of 0.69, and an EV to EBITDA of 5.74, which suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to peers, NGL Energy Partners LP has a lower P/E ratio than the industry average of approximately 15.66, indicating it may be undervalued relative to its earnings potential. Additionally, the PEG ratio of 0.05 highlights significant growth potential compared to its price. Over the past year, NGL Energy Partners LP has returned 54.67%, significantly outperforming the S&P 500's return of 17.14%, reinforcing the notion that the stock is currently fairly valued.