Is Western Midstream Partners LP overvalued or undervalued?

As of 3 May 2016, the valuation grade for Western Midstream Partners LP moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 11, which is lower than its peer Plains All American Pipeline LP at 9.78, and an EV to EBITDA ratio of 9.66, also below the peer average of 8.11. Additionally, the company boasts a strong ROE of 42.05%, suggesting effective management and profitability relative to shareholder equity.
In comparison to the S&P 500, Western Midstream Partners LP has underperformed over the past year with a return of -2.80% versus the S&P 500's 17.14%, although it has shown remarkable growth over the last five years with a return of 395.75% compared to the S&P's 96.61%. This combination of attractive valuation ratios and historical performance suggests that the stock is positioned well for potential upside.