Is NGL Energy Partners LP overvalued or undervalued?

As of 19 September 2025, the valuation grade for NGL Energy Partners LP moved from expensive to fair. The company appears to be undervalued based on its current valuation metrics, including a P/E ratio of 9, a Price to Book Value of 0.69, and an EV to EBITDA ratio of 5.74. In comparison to peers, NGL Energy Partners LP's P/E ratio is significantly lower than DT Midstream, Inc. at 27.25 and Antero Midstream Corp. at 18.94, indicating a more attractive valuation.
Additionally, NGL Energy Partners LP has delivered impressive returns, outperforming the S&P 500 with a 1-year return of 37.42% compared to the index's 16.64%. This strong performance, coupled with its fair valuation grade and favorable ratios, suggests that the stock is a compelling investment opportunity.