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How Enbridge Energy Partners Looks 5 Months after Dividend Cut

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1 2 3 4 5 6 7 8
Part 7
How Enbridge Energy Partners Looks 5 Months after Dividend Cut PART 7 OF 8

What Does Enbridge Energy Partners’ Valuation Indicate?

EV-to-EBITDA multiple

Enbridge Energy Partners (EEP) currently trades at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio of ~11x. It’s slightly lower than its five-year average multiple of ~11.7x. Enbridge Energy Partners’ multiple is also lower than ~14x for ONEOK (OKE), ~12x for Targa Resources (TRGP), and 13x for Enterprise Products Partners (EPD).

What Does Enbridge Energy Partners’ Valuation Indicate?

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As the above graph shows, similar to EEP, EPD is trading at a forward EV-to-EBITDA multiple that’s lower than its five-year average. ONEOK and Targa Resources are trading at a forward EV-to-EBITDA multiple that’s higher than their respective five-year average multiples.

EEP’s yield

Enbridge Energy Partners is currently trading at a yield of ~8.6%, higher than most other MLPs as well as the Alerian MLP Index. EEP’s yield is higher than ~7.8% for Targa Resources, ~6.5% for Enterprise Products Partners, and ~5.4% for ONEOK. The Alerian MLP Index (^AMZ) yields ~7.7%.

To learn about MLPs that are offering the highest yields, read These 10 MLPs Offer the Highest Yields.

In the final part of this series, we’ll discuss what Wall Street analysts recommend for EEP for the next one year.

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