Is Sunoco LP overvalued or undervalued?

As of 2 May 2024, the valuation grade for Sunoco LP has moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, supported by a P/E ratio of 12, an EV to EBITDA of 11.98, and a PEG ratio of 0.59, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to peers, Sunoco LP's P/E ratio is notably lower than that of Pool Corp., which stands at 30.46, and WESCO International, Inc., at 20.94, highlighting its relative attractiveness in the market. Despite recent underperformance, with a 1-year return of -6.89% compared to the S&P 500's 17.14%, the long-term outlook remains positive, as evidenced by a 5-year return of 100.16%, which slightly outpaces the S&P 500's 96.61%.