Blog / How do I evaluate MLPs (Master Limited Partnerships)?

How do I evaluate MLPs (Master Limited Partnerships)?

When evaluating MLPs, the most appropriate metric is cash flow.

It’s important to emphasize the idea that the orange line is relevant as it is with other companies.  However, since MLPs are primarily valued based on their income distributions (dividends), the dividend line (honeydew/white) could be considered a more conservative valuation reference line.