Targa Resources Valuation
Is TRGP * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
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 TRGP * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TRGP * (MX$4120) is trading above our estimate of fair value (MX$2524.45)
Significantly Below Fair Value: TRGP * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TRGP *?
Key metric: As TRGP * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is TRGP *'s PE Ratio? | |
|---|---|
| PE Ratio | 36.7x |
| Earnings | US$1.23b |
| Market Cap | US$45.21b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.8x |
| Enterprise Value/EBITDA | 15.2x |
| PEG Ratio | 2.3x |
Price to Earnings Ratio vs Peers
How does TRGP *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 16.2x | ||
LNG Cheniere Energy | 13.7x | -8.3% | US$49.9b |
MPLX MPLX | 11.7x | 3.7% | US$50.5b |
KMI Kinder Morgan | 25.1x | 8.1% | US$63.3b |
TRP TC Energy | 14.2x | -2.3% | CA$72.3b |
TRGP * Targa Resources | 36.7x | 16.0% | Mex$45.2b |
Price-To-Earnings vs Peers: TRGP * is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the peer average (16.2x).
Price to Earnings Ratio vs Industry
How does TRGP *'s PE Ratio compare vs other companies in the Global Oil and Gas Industry?
| 30 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 30 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: TRGP * is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the Global Oil and Gas industry average (10.7x).
Price to Earnings Ratio vs Fair Ratio
What is TRGP *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 36.7x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TRGP *'s Price-To-Earnings Fair Ratio for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$4,120.00 | Mex$3,914.85 -5.0% | 12.4% | Mex$4,948.81 | Mex$2,715.81 | n/a | 21 |
| Nov ’25 | n/a | Mex$3,353.07 0% | 12.5% | Mex$4,057.47 | Mex$2,229.60 | n/a | 21 |
| Oct ’25 | n/a | Mex$2,965.85 0% | 8.8% | Mex$3,412.70 | Mex$2,177.07 | n/a | 21 |
| Sep ’25 | Mex$2,909.60 | Mex$2,885.26 -0.8% | 8.2% | Mex$3,369.12 | Mex$2,083.79 | n/a | 22 |
| Aug ’25 | n/a | Mex$2,651.24 0% | 9.1% | Mex$2,984.76 | Mex$1,858.44 | n/a | 22 |
| Jul ’25 | n/a | Mex$2,388.43 0% | 7.8% | Mex$2,699.70 | Mex$1,818.16 | n/a | 22 |
| Jun ’25 | n/a | Mex$2,083.73 0% | 6.2% | Mex$2,231.92 | Mex$1,646.75 | n/a | 22 |
| May ’25 | n/a | Mex$2,101.12 0% | 7.4% | Mex$2,298.07 | Mex$1,695.55 | n/a | 22 |
| Apr ’25 | n/a | Mex$1,886.89 0% | 8.1% | Mex$2,231.61 | Mex$1,579.99 | n/a | 22 |
| Mar ’25 | n/a | Mex$1,860.98 0% | 6.1% | Mex$2,076.27 | Mex$1,616.77 | n/a | 22 |
| Feb ’25 | n/a | Mex$1,831.71 0% | 8.2% | Mex$2,099.46 | Mex$1,359.49 | n/a | 22 |
| Jan ’25 | n/a | Mex$1,800.93 0% | 8.4% | Mex$2,063.30 | Mex$1,336.07 | n/a | 22 |
| Dec ’24 | n/a | Mex$1,824.29 0% | 8.3% | Mex$2,062.86 | Mex$1,358.05 | n/a | 22 |
| Nov ’24 | n/a | Mex$1,867.27 0% | 9.5% | Mex$2,148.37 | Mex$1,299.85 | n/a | 22 |
| Oct ’24 | n/a | Mex$1,730.81 0% | 10.3% | Mex$1,999.55 | Mex$1,230.49 | n/a | 20 |
| Sep ’24 | n/a | Mex$1,691.04 0% | 10.1% | Mex$1,962.32 | Mex$1,207.58 | Mex$2,909.60 | 20 |
| Aug ’24 | n/a | Mex$1,660.83 0% | 10.3% | Mex$1,977.52 | Mex$1,216.94 | n/a | 19 |
| Jul ’24 | n/a | Mex$1,683.19 0% | 10.6% | Mex$2,029.70 | Mex$1,228.05 | n/a | 19 |
| Jun ’24 | n/a | Mex$1,742.37 0% | 9.9% | Mex$2,112.33 | Mex$1,278.05 | n/a | 19 |
| May ’24 | n/a | Mex$1,788.53 0% | 10.9% | Mex$2,139.61 | Mex$1,294.55 | n/a | 19 |
| Apr ’24 | n/a | Mex$1,758.09 0% | 10.5% | Mex$2,144.67 | Mex$1,297.61 | n/a | 20 |
| Mar ’24 | Mex$912.11 | Mex$1,745.64 +91.4% | 10.6% | Mex$2,154.25 | Mex$1,303.41 | n/a | 21 |
| Feb ’24 | Mex$912.11 | Mex$1,745.49 +91.4% | 10.7% | Mex$2,071.25 | Mex$1,205.09 | n/a | 20 |
| Jan ’24 | Mex$912.11 | Mex$1,832.25 +100.9% | 10.8% | Mex$2,197.51 | Mex$1,267.03 | n/a | 20 |
| Dec ’23 | Mex$912.11 | Mex$1,782.87 +95.5% | 11.3% | Mex$2,143.71 | Mex$1,236.01 | n/a | 19 |
| Nov ’23 | Mex$912.11 | Mex$1,813.54 +98.8% | 10.8% | Mex$2,139.96 | Mex$1,268.12 | n/a | 19 |
Analyst Forecast: Target price is lower than the current share price.
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