Today we're going to take a closer look at large-cap Energy company MPLX LP, whose shares are currently trading at $34.27. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 7.54 and an average price to book (P/B) ratio of 1.68. In contrast, MPLX LP has a trailing 12 month P/E ratio of 8.8 and a P/B ratio of 2.93.
MPLX LP's PEG ratio is 1.26, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.