Targa Resources Corp.

DB:TAR Stock Report

Market Cap: €38.9b

Targa Resources Valuation

Is TAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TAR (€177.65) is trading below our estimate of fair value (€221.1)

Significantly Below Fair Value: TAR is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TAR?

Key metric: As TAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TAR. This is calculated by dividing TAR's market cap by their current earnings.
What is TAR's PE Ratio?
PE Ratio32.4x
EarningsUS$1.23b
Market CapUS$39.92b

Price to Earnings Ratio vs Peers

How does TAR's PE Ratio compare to its peers?

The above table shows the PE ratio for TAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.2x
VH2 Friedrich Vorwerk Group
19.5x12.9%€548.0m
LNG Cheniere Energy
13.6x-7.0%US$48.2b
MPLX MPLX
11.5x3.7%US$48.8b
CQP Cheniere Energy Partners
12x-1.8%US$25.7b
TAR Targa Resources
31.6x16.1%€38.9b

Price-To-Earnings vs Peers: TAR is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the peer average (14.2x).

Price to Earnings Ratio vs Industry

How does TAR's PE Ratio compare vs other companies in the European Oil and Gas Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAR 32.4xIndustry Avg. 8.7xNo. of Companies16PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TAR is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the European Oil and Gas industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is TAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.4x
Fair PE Ratio28.9x

Price-To-Earnings vs Fair Ratio: TAR is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€177.65
€191.45
+7.8%
14.7%€249.91€130.26n/a21
Dec ’25€192.65
€184.03
-4.5%
14.3%€244.76€127.58n/a21
Nov ’25€152.05
€154.38
+1.5%
12.5%€186.81€102.65n/a21
Oct ’25€135.75
€136.61
+0.6%
8.8%€157.19€100.28n/a21
Sep ’25€132.50
€133.40
+0.7%
8.2%€155.77€96.34n/a22
Aug ’25€125.30
€130.88
+4.5%
9.1%€147.35€91.74n/a22
Jul ’25€121.40
€121.12
-0.2%
7.8%€136.90€92.20n/a22
Jun ’25€108.35
€115.40
+6.5%
6.2%€123.61€91.20n/a22
May ’25€106.50
€114.93
+7.9%
7.4%€125.70€92.74n/a22
Apr ’25€103.60
€105.62
+2.0%
8.1%€124.92€88.45n/a22
Mar ’25€91.28
€100.91
+10.5%
6.1%€112.58€87.67n/a22
Feb ’25€78.74
€98.51
+25.1%
8.2%€112.91€73.11n/a22
Jan ’25€77.82
€95.89
+23.2%
8.4%€109.86€71.14€168.4022
Dec ’24€82.52
€97.25
+17.9%
8.3%€109.97€72.40€192.6522
Nov ’24€79.44
€97.42
+22.6%
9.5%€112.09€67.82€152.0522
Oct ’24€80.72
€95.01
+17.7%
10.3%€109.76€67.54€135.7520
Sep ’24€80.90
€93.20
+15.2%
10.1%€108.15€66.56€132.5020
Aug ’24€73.90
€89.60
+21.2%
10.3%€106.68€65.65€125.3019
Jul ’24€69.44
€90.21
+29.9%
10.6%€108.78€65.82€121.4019
Jun ’24€63.50
€90.85
+43.1%
9.9%€110.15€66.64€108.3519
May ’24€68.58
€90.27
+31.6%
10.9%€107.99€65.34€106.5019
Apr ’24€66.00
€89.93
+36.3%
10.5%€109.71€66.38€103.6020
Mar ’24€69.50
€90.44
+30.1%
10.6%€111.61€67.53€91.2821
Feb ’24€67.50
€85.27
+26.3%
10.7%€101.19€58.87€78.7420
Jan ’24€68.50
€87.31
+27.5%
10.8%€104.72€60.38€77.8220

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/03 08:30
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Targa Resources Corp. is covered by 39 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ethan BellamyBaird
Theresa ChenBarclays
Richard GrossBarclays