Is Plains GP Holdings LP overvalued or undervalued?

As of 9 February 2022, the valuation grade for Plains GP Holdings LP moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued. Key ratios include a P/E ratio of 11, an EV to EBITDA of 8.51, and a ROE of 97.00%, which highlights strong profitability relative to equity.
When compared to peers, Plains GP Holdings LP has a P/E ratio of 10.95, which is lower than Western Midstream Partners LP at 10.91 and Plains All American Pipeline LP at 9.29, both of which are also classified as very attractive. In contrast, Antero Midstream Corp. is deemed very expensive with a P/E of 20.20. Additionally, Plains GP Holdings LP has outperformed the S&P 500 in the past year, with a return of 8.61% compared to the index's 10.26%, reinforcing its strong valuation narrative.