Targa Resources Corp.

NYSE:TRGP Stock Report

Market Cap: US$38.6b

Targa Resources Valuation

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

Valuation Score

0/6

Valuation 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 ($176.79) is trading above our estimate of fair value ($153.18)

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.

The above table shows the Price to Earnings ratio for TRGP. This is calculated by dividing TRGP's market cap by their current earnings.
What is TRGP's PE Ratio?
PE Ratio31.3x
EarningsUS$1.23b
Market CapUS$38.55b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TRGP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.7x
LNG Cheniere Energy
12.8x-8.9%US$46.9b
MPLX MPLX
11.2x3.7%US$48.2b
CQP Cheniere Energy Partners
11.3x-1.7%US$25.3b
KMI Kinder Morgan
23.6x8.2%US$59.7b
TRGP Targa Resources
31.3x16.1%US$38.6b

Price-To-Earnings vs Peers: TRGP is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
TRGP 31.3xIndustry Avg. 10.9xNo. of Companies16PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRGP is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the US Oil and Gas industry average (10.9x).

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.

TRGP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.3x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: TRGP is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

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 TRGP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$176.79
US$198.41
+12.2%
14.7%US$259.00US$135.00n/a21
Dec ’25US$204.30
US$194.75
-4.7%
14.3%US$259.00US$135.00n/a21
Nov ’25US$165.27
US$166.93
+1.0%
12.5%US$202.00US$111.00n/a21
Oct ’25US$150.58
US$151.22
+0.4%
8.8%US$174.00US$111.00n/a21
Sep ’25US$146.90
US$148.15
+0.9%
8.2%US$173.00US$107.00n/a22
Aug ’25US$136.10
US$141.23
+3.8%
9.1%US$159.00US$99.00n/a22
Jul ’25US$131.27
US$130.05
-0.9%
7.8%US$147.00US$99.00n/a22
Jun ’25US$118.23
US$125.27
+6.0%
6.2%US$134.18US$99.00n/a22
May ’25US$112.41
US$122.68
+9.1%
7.4%US$134.18US$99.00n/a22
Apr ’25US$112.23
US$113.45
+1.1%
8.1%US$134.18US$95.00n/a22
Mar ’25US$99.34
US$109.35
+10.1%
6.1%US$122.00US$95.00n/a22
Feb ’25US$86.04
US$106.44
+23.7%
8.2%US$122.00US$79.00n/a22
Jan ’25US$86.87
US$106.49
+22.6%
8.4%US$122.00US$79.00n/a22
Dec ’24US$90.16
US$106.12
+17.7%
8.3%US$120.00US$79.00US$204.3022
Nov ’24US$84.15
US$103.43
+22.9%
9.5%US$119.00US$72.00US$165.2722
Oct ’24US$85.72
US$101.28
+18.1%
10.3%US$117.00US$72.00US$150.5820
Sep ’24US$87.53
US$100.83
+15.2%
10.1%US$117.00US$72.00US$146.9020
Aug ’24US$81.61
US$98.26
+20.4%
10.3%US$117.00US$72.00US$136.1019
Jul ’24US$76.10
US$98.68
+29.7%
10.6%US$119.00US$72.00US$131.2719
Jun ’24US$68.80
US$98.16
+42.7%
9.9%US$119.00US$72.00US$118.2319
May ’24US$75.40
US$99.47
+31.9%
10.9%US$119.00US$72.00US$112.4119
Apr ’24US$72.95
US$97.55
+33.7%
10.5%US$119.00US$72.00US$112.2320
Mar ’24US$76.29
US$96.43
+26.4%
10.6%US$119.00US$72.00US$99.3421
Feb ’24US$74.58
US$92.70
+24.3%
10.7%US$110.00US$64.00US$86.0420
Jan ’24US$73.50
US$92.55
+25.9%
10.8%US$111.00US$64.00US$86.8720
Dec ’23US$74.95
US$92.32
+23.2%
11.3%US$111.00US$64.00US$90.1619

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:14
End of Day Share Price 2024/12/20 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 40 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