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If a master limited partnership has large projects expected to come online in the near future, you would expect shares of it to trade at a pretty decent premium. After all, those growth plans normally mean distributions will increase, as well.

Surprisingly, this isn't the case at Spectra Energy Partners (SEP +0.00%) today. Despite the fact that the company expects to put more than $3 billion in projects online between now and 2016, shares of Spectra Energy Partners are relatively undervalued when compared to its peers Magellan Midstream Partners (MMP +0.00%) and ONEOK Partners (OKS +0.00%) 

Find out how much Spectra is trading in comparison to its peers, and what metrics are used to value master limited partnerships in lieu of the traditional price-to-earnings ratio, by tuning into the video below.

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About the Author

Tyler Crowe
Tyler Crowe is a contributing Stock Market Analyst for The Motley Fool. He has worn several hats over the past 14 years with the Fool from analyzing stocks, writing about them, talking about them, coaching others about stock writing, and...you get the idea. Tyler's true passion is turing over stones to find the oddball investments with incredible wealth building potential. If he isn't nose-deep in a proxy statement, Tyler is probably skiing somewhere. Tyler holds an M.B.A. from Collège des Ingénieurs (Paris), a, M.S. in Environmental Engineering, a B.S. in Civil Engineering, and a B.S. in Foreign Affairs from the University of New Hampshire.
TMFTylerMCrowe

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