Is NGL Energy Partners LP overvalued or undervalued?

As of 17 October 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 relative to its earnings and book value.
In comparison to peers, NGL Energy Partners LP has a P/E ratio of 15.66, indicating that it is undervalued relative to its industry average. Notably, the company has demonstrated strong performance with a YTD return of 21.04%, significantly outperforming the S&P 500's return of 13.30% during the same period. However, over the past 1 year, while the stock has returned 40.47%, it has still lagged behind the benchmark's return of 14.08%.