Enterprise Products Partners (EPD) is back in focus after reporting record Q1 2026 operating volumes across key midstream segments, supported by strong distributable cash flow, ongoing distribution growth, and continued unit repurchases.

At a share price of $37.25, Enterprise Products Partners has eased slightly over the past week and month yet still carries a strong year to date share price return of 15.83% alongside a 1 year total shareholder return of 24.08%. This points to momentum that has been supported by record Q1 2026 volumes, global energy supply disruptions and higher demand for U.S. NGL exports.

If the resilience of EPD’s cash flows has caught your attention, it could be worth widening the lens to other energy infrastructure plays using our power grid and infrastructure stock screener, starting with 35 power grid technology and infrastructure stocks.

So with EPD trading at $37.25, a 10.9% discount to the average analyst price target and an internal intrinsic value estimate implying even more upside, is the stock still offering value, or is the market already pricing in future growth?

Most Popular Narrative: 9.8% Undervalued

With Enterprise Products Partners trading at $37.25 against a narrative fair value of $41.30, the current setup reflects a modest valuation gap built on detailed long term assumptions.

The completion of two gas processing plants in the Permian, along with several key pipeline and export terminal projects, is expected to enhance Enterprise Products Partners’ infrastructure, potentially driving revenue growth from increased volume handling and exports.

With no major planned downtimes for the PDH plants after recent maintenance, Enterprise is poised to capture additional EBITDA that was previously lost to unplanned outages, suggesting potential earnings improvement.

Want to see what is baked into that valuation gap? The narrative leans on measured revenue growth, slightly higher margins and a richer earnings multiple. The balance between these moving parts is what really matters.

Result: Fair Value of $41.30 (UNDERVALUED)

However, the picture can change quickly if operational hiccups such as PDH downtime reappear or if tariffs and export conditions move against U.S. hydrocarbons.

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Another View: P/E Tells a Different Story

Our DCF work points to a very large gap, with EPD at $37.25 versus an estimated future cash flow value of $92.25, which screens as significantly undervalued. On a simple P/E of 13.8x, however, the stock appears in line with the US Oil and Gas industry at 13.8x and only cheaper than peers at 20.4x. The fair ratio of 24x also indicates that the market may have room to re-rate the shares over time. Is this a genuine opportunity, or does the DCF rely on assumptions you are not fully comfortable with?

Next Steps

Mixed signals or a clear opportunity? The only way to know is to look through the same data and pressure test the story for yourself using 3 key rewards and 2 important warning signs

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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.