Is Sunoco LP overvalued or undervalued?

As of 2 May 2024, the valuation grade for Sunoco LP has moved from fair to very attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued, with a P/E ratio of 12, which is notably lower than the industry average. Additionally, the EV to EBITDA ratio stands at 11.98, while the PEG ratio is an impressive 0.59, suggesting that the stock is priced attractively relative to its growth potential.
In comparison to its peers, Sunoco LP's valuation metrics are compelling. For instance, Genuine Parts Co. is deemed expensive with a P/E of 16.70, while Pool Corp. has a much higher P/E of 26.38, further underscoring Sunoco's relative undervaluation. Despite a recent dip in stock performance over the past year, where it returned -5.26% compared to the S&P 500's 10.26%, the long-term outlook remains positive, especially given its strong performance over the last three and five years.