As of June 1, 2025, Enable Midstream Partners LP's estimated intrinsic value ranges from $1.92 to $24.06 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $10.34 | +46.7% |
| Discounted Cash Flow (5Y) | $9.12 | +29.3% |
| Dividend Discount Model (Multi-Stage) | $1.92 | -72.8% |
| Dividend Discount Model (Stable) | $9.49 | +34.6% |
| Earnings Power Value | $24.06 | +241.2% |
Is Enable Midstream Partners LP (ENBL) undervalued or overvalued?
With the current market price at $7.05, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Enable Midstream Partners LP's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.29 | 1.44 |
| Cost of equity | 8.7% | 11.7% |
| Cost of debt | 4.0% | 5.5% |
| Tax rate | 0.1% | 0.2% |
| Debt/Equity ratio | 1.37 | 1.37 |
| After-tax WACC | 6.0% | 8.1% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $9 | $7,940M | 75.2% |
| 10-Year Growth | $10 | $8,473M | 55.7% |
| 5-Year EBITDA | $7 | $7,185M | 72.5% |
| 10-Year EBITDA | $9 | $7,930M | 52.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $992M |
| Discount Rate (WACC) | 8.1% - 6.0% |
| Enterprise Value | $12,249M - $16,643M |
| Net Debt | $3,968M |
| Equity Value | $8,281M - $12,675M |
| Outstanding Shares | 436M |
| Fair Value | $19 - $29 |
| Selected Fair Value | $24.06 |
| Metric | Value |
|---|---|
| Market Capitalization | $3071M |
| Enterprise Value | $7039M |
| Trailing P/E | 6.63 |
| Forward P/E | 28.85 |
| Trailing EV/EBITDA | 7.40 |
| Current Dividend Yield | 1051.90% |
| Dividend Growth Rate (5Y) | -8.34% |
| Debt-to-Equity Ratio | 1.37 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $3.10 |
| Discounted Cash Flow (5Y) | 25% | $2.28 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.38 |
| Dividend Discount Model (Stable) | 15% | $1.42 |
| Earnings Power Value | 10% | $2.41 |
| Weighted Average | 100% | $9.60 |
Based on our comprehensive valuation analysis, Enable Midstream Partners LP's weighted average intrinsic value is $9.60, which is approximately 36.1% above the current market price of $7.05.
Key investment considerations:
Given these factors, we believe Enable Midstream Partners LP is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.