Enterprise Products Partners L.P. (EPD) Company Bio
Enterprise Products Partners LP provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products in the United States and internationally. The company was founded in 1968 and is based in Houston, Texas.
EPD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EPD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Enterprise Products Partners Lp ranked in the 50th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 4.83%. As for the metrics that stood out in our discounted cash flow analysis of Enterprise Products Partners Lp, consider:
Enterprise Products Partners Lp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 4.24% of tickers in our DCF set.
Enterprise Products Partners Lp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 12.51% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DLNG, TRGP, GLNG, IMO, and PEIX can be thought of as valuation peers to EPD, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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