<div id="readability-page-1"><div><ul> <li>If you are wondering whether ONEOK is fairly priced at its recent levels, you are not alone. This article focuses squarely on what you are getting for the price you pay.</li> <li>ONEOK's share price closed at US$85.76, with returns of 1.2% over 7 days, 3.2% over 30 days, 15.4% year to date and a 2.6% decline over the past year, while the 3 year and 5 year returns sit at 64.8% and 126.1% respectively.</li> <li>Recent news around ONEOK has largely centred on its position in the US energy infrastructure space and investor interest in how midstream companies are priced relative to their assets and cash flows. This context helps frame why the stock's recent moves have put valuation back in focus for many shareholders.</li> <li>Our checklist based valuation view currently gives ONEOK a score of 4 out of 6. We will break this down using multiple valuation approaches next, before finishing with a broader way to think about what &#34;fair value&#34; really means for this stock.</li> </ul> Find out why ONEOK's -2.6% return over the last year is lagging behind its peers. <h2>Approach 1: ONEOK Discounted Cash Flow (DCF) Analysis</h2> A Discounted Cash Flow model starts with estimates of the cash a company could generate in the future and then discounts those cash flows back to today, to arrive at an estimate of what the business might be worth right now. For ONEOK, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $2.48b. Analyst and extrapolated estimates in the model have free cash flow reaching about $4.78b by 2030, with a detailed path of yearly projections between 2026 and 2035 that are discounted back to today in the model. Pulling those discounted figures together, the DCF output suggests an intrinsic value of about $166.20 per share. Compared with the recent share price of $85.76, this implies the stock screens as around 48.4% undervalued using this method. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests ONEOK is undervalued by 48.4%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/148ac172-5094-4d8d-9b71-44d10ddd379f/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTEy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/148ac172-5094-4d8d-9b71-44d10ddd379f/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTEy"/><figcaption>OKE Discounted Cash Flow as at Mar 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for ONEOK. <h2>Approach 2: ONEOK Price vs Earnings</h2> For profitable companies, the P/E ratio is a useful cross check because it links what you pay directly to current earnings. The level of P/E investors are usually comfortable with tends to move around based on how fast they expect earnings to grow, and how much risk they see in those earnings. ONEOK is currently trading on a P/E of 15.9x. That sits modestly above the Oil and Gas industry average of 15.1x, and below the peer group average of 17.3x. Simply Wall St also calculates a “Fair Ratio” for the stock of 22.6x, which is the P/E level that would typically line up with factors such as the company’s earnings growth profile, profit margins, industry, market cap and risk characteristics. This Fair Ratio aims to be more informative than a simple comparison with peers or the broad industry, because it adjusts for company specific traits instead of assuming a one size fits all multiple. Compared with the current 15.9x P/E, the Fair Ratio of 22.6x suggests the shares screen as undervalued on this metric. Result: UNDERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/148ac172-5094-4d8d-9b71-44d10ddd379f/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTEy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/148ac172-5094-4d8d-9b71-44d10ddd379f/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTEy"/><figcaption>NYSE:OKE P/E Ratio as at Mar 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies. <h3>Upgrade Your Decision Making: Choose your ONEOK Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your own story for ONEOK that ties what you believe about its future revenue, earnings and margins to a financial forecast and a Fair Value that you can compare with today’s price inside the Narratives tool on Simply Wall St’s Community page. Instead of only looking at a single DCF or P/E output, you can pick or create a Narrative that reflects your view, for example a cautious stance that aligns with a Fair Value near US$74, or a more optimistic stance closer to US$118.38. You can then see how that story flows through to future numbers and a Fair Value that updates when new news, earnings or guidance arrive. For ONEOK, however, we will make it really easy for you with previews of two leading ONEOK Narratives: Each one ties a different view of future growth, risk and P/E into a single fair value number you can compare with today’s US$85.76 share price. 🐂 ONEOK Bull Case Fair value: about US$87.30 per share Implied mispricing vs last close: around 1.8% below this narrative fair value Revenue growth assumption: 3.21% a year <ul> <li>Analysts in this camp see ONEOK using its expanded midstream and export footprint, including recent acquisitions, to support steady revenue, slightly higher margins and a solid role in US natural gas and NGL flows.</li> <li>They factor in growing free cash flow and reduced leverage that could support capital returns and reinvestment while keeping an eye on commodity volatility, debt from acquisitions, and regulatory or ESG headwinds.</li> <li>This view lines up with an analyst consensus fair value near US$87, backed by assumptions for modest revenue growth, a small margin uplift and a P/E that reflects confidence in future execution.</li> </ul> 🐻 ONEOK Bear Case Fair value: about US$74.00 per share Implied mispricing vs last close: around 15.9% above this narrative fair value Revenue growth assumption: 3.50% decline a year <ul> <li>The bearish group puts more weight on flat 2026 guidance, softer revenue and margin assumptions and questions around how much earnings momentum ONEOK can deliver without help from commodity spreads.</li> <li>They highlight risks from high capital spending, debt levels and long term exposure to hydrocarbons if decarbonization and regulation curb demand or shorten asset lives.</li> <li>In this framework, a fair value near US$74 reflects slower or declining revenue, slightly lower profitability and a P/E multiple that they see as more restrained if growth stays muted.</li> </ul> Putting these Narratives side by side gives you a clear range: one view with fair value close to the current price and another with a lower fair value that frames more downside risk. The key is deciding which set of assumptions about growth, margins, regulation and energy demand you find more realistic for ONEOK over the next several years. Curious how numbers become stories that shape markets? Explore Community Narratives Do you think there's more to the story for ONEOK? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/148ac172-5094-4d8d-9b71-44d10ddd379f/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTEy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/148ac172-5094-4d8d-9b71-44d10ddd379f/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTEy"/><figcaption>NYSE:OKE 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<div><h3>New: AI Stock Screener &amp; Alerts</h3>Our new AI Stock Screener scans the market every day to uncover opportunities.<div>• Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI CompaniesOr build your own from over 50 metrics.</div>Explore Now for Free</div></div></div>

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The article discusses the valuation of ONEOK (OKE), which closed at $85.76, showing mixed returns over various periods. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 48.4%, with an intrinsic value of $166.20 per share. Additionally, the Price-to-Earnings (P/E) ratio of 15.9x indicates it is undervalued compared to industry averages. The article emphasizes the importance of individual narratives in assessing ONEOK's future growth and fair value, offering different perspectives on its potential valuation.

Is It Time To Reconsider ONEOK (OKE) After Recent Midstream Valuation Debate?