Energy Transfer: Fair Value Of $20 And The Yield Is 8% Today

Summary

• Units of Energy Transfer are drastically discounted compared to their peer group and what I consider to be their fair value of $20 is an upside of 100%.
• The unit price has declined by -15.23% over the previous month, putting ET's yield just past 8%.
• The global energy landscape sets up well for ET, and as exporting ramps up to meet demand, ET will be one of the midstream operators to substantially benefit.

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Of all the dividend/distribution companies I follow, Energy Transfer (NYSE:ET) is certainly in the discussion for being the most undervalued. It doesn't matter where a company's share price came from, only where it may go in

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ET, EPD, KMI, BP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.