Energy Transfer (ET) Could Be 11% Undervalued After Its Texas Stock Exchange Move
Energy Transfer (ET) has become a focal point for investors after announcing that its common and Series I preferred units will shift from the New York Stock Exchange to the Texas Stock Exchange on October 5, 2026.
Investors have been watching Energy Transfer closely as the TSX listing plan lands on top of a strong run, with the unit price at US$21.55 and a year to date share price return of 29.9% that builds on a 13% 90 day gain and 2.86% 30 day rise.
Scan how Energy Transfer compares with other pipeline and infrastructure plays that are showing strong momentum and fundamentals in the list of solid balance sheet and fundamentals (23 results).
Energy Transfer has already rewarded holders with a strong run into the TXSE move. The open question now is whether the valuation still points to meaningful upside or whether most of the easy money is behind it.
Most Popular Narrative: 10.6% Undervalued
On the most followed view, Energy Transfer’s fair value of about $24.10 sits above the latest close at $21.55. This puts the TXSE move against a backdrop of an already discounted unit price and a detailed long term earnings roadmap.
Aggressive organic growth project backlog (many expected to deliver mid-teen returns from 2026 onward) and a proven history of successful M&A provide strong forward visibility into distributable cash flow and earnings growth, likely supporting valuation re-rating over time.
Read the complete narrative. Read the complete narrative.
Want to see what is baked into that valuation gap? The most important levers are revenue growth assumptions, fatter profit margins, and a higher future earnings multiple. Curious which mix of these inputs bridges the move from today’s cash flows to that fair value mark.
Result: Fair Value of $24.10 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
Still, the bullish Energy Transfer story can crack if large multibillion dollar projects face regulatory delays or if long dated gas demand contracts fail to materialize.
Find out about the key risks to this Energy Transfer narrative.
Next Steps
Energy Transfer attracts both optimists and skeptics right now. Move quickly, review the key positives and red flags, and weigh the 3 key rewards and 2 important warning signs.
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If you only stop at Energy Transfer, you risk missing other opportunities that line up with your goals, risk comfort, and income needs across the market.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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