Expensive and softening.

Trading above fair value while the fundamentals weaken — little to like right now.

Current price
$38.73
Market cap ≈ $85B
Intrinsic value
$22
range $13 – $37
Margin of safety
-43%
above fair value
1 FY16 2 FY17 2 FY18 2 FY19 3 FY20 6 FY21 6 FY22 4 FY23 4 FY24 3 FY25

What the math is really telling you. Watch whether cash flow is compounding — that, more than any single year, is what a value read hangs on.

  • Warning:
    Overvalued
    Fair value ~$22 vs $39 — trading 43% above what the math supports.
  • Warning:
    Price assumes a big acceleration
    You'd need ~10%/yr free-cash-flow growth to justify today's price; it has done -21.3%/yr lately.
  • Warning:
    Revenue shrinking
    Down 6.4% last year — cheap may mean broken.
  • Caution:
    Cash flow flat-to-down
    Free cash flow ~-21.3%/yr — big, but not compounding. The crux for a value buyer.
  • Warning:
    Heavy debt load
    Net debt of $33B — roughly 8× annual free cash flow. This changes the risk picture.

How this was built. Every figure is computed from Enterprise Products Partners L.P.'s SEC filings — no estimates, no AI. Two-stage DCF: 9% discount rate, 5% free-cash-flow growth for 10 years, 2.5% terminal. Free cash flow is operating cash flow less capital spending. Fair value is based on typical free cash flow over the last five years ($4.3B), not the latest year ($3.0B), which sat 31% below the company's own norm. Net cash is cash and marketable securities less borrowings, commercial paper and finance leases; operating leases are disclosed but never counted as debt. We subtract net debt from the value of the business — for Enterprise Products that is about $33B, or $15 per unit. Fundamentals are from the FY25 annual report and change only when a new one is filed. Price of $38.73 taken 2026-07-24 (founder-supplied CSV, July 2026) — it is not live and does not move during the day.

TickerMath is an educational tool, not investment advice — it computes one model from SEC filings and can be wrong. How we compute this →