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. Based on the current metrics, the company appears to be fairly valued. Key valuation ratios include a P/E ratio of 9, a Price to Book Value of 0.69, and an EV to EBITDA of 5.74. In comparison to peers, NGL Energy Partners LP has a higher P/E ratio than the industry average of approximately 15.66, indicating a relative undervaluation in earnings terms.
The company's recent stock performance shows a year-to-date return of 21.04%, significantly outperforming the S&P 500's return of 13.30% over the same period, and a remarkable 368.22% return over the last three years compared to the S&P 500's 81.19%. This strong performance suggests that while the stock is currently fairly valued, it has been a strong performer relative to broader market indices.