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 is currently fairly valued based on its financial 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. In comparison to peers, NGL Energy Partners LP has a lower P/E ratio than the industry average of 15.66, indicating it may not be as highly valued as some competitors.
Despite the recent downgrade in valuation, the company has shown strong performance with a year-to-date return of 21.04%, significantly outperforming the S&P 500's return of 13.30% over the same period. However, over the past three years, while NGL Energy Partners LP has returned an impressive 368.22%, it still lags behind the S&P 500's 81.19% return, suggesting a mixed performance in the longer term.