TRGP Relative Valuation
TRGP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TRGP is overvalued; if below, it's undervalued.
Historical Valuation
Targa Resources Corp (TRGP) is now in the Fair zone, suggesting that its current forward PE ratio of 19.45 is considered Fairly compared with the five-year average of 17.93. The fair price of Targa Resources Corp (TRGP) is between 139.98 to 205.27 according to relative valuation methord.
Relative Value
Fair Zone
139.98-205.27
Current Price：180.02
Fair
19.45
PE
1Y
3Y
5Y
Trailing
Forward
10.59
EV/EBITDA
Targa Resources Corp. (TRGP) has a current EV/EBITDA of 10.59. The 5-year average EV/EBITDA is 9.72. The thresholds are as follows: Strongly Undervalued below 6.92, Undervalued between 6.92 and 8.32, Fairly Valued between 11.11 and 8.32, Overvalued between 11.11 and 12.51, and Strongly Overvalued above 12.51. The current Forward EV/EBITDA of 10.59 falls within the Historic Trend Line -Fairly Valued range.
16.03
EV/EBIT
Targa Resources Corp. (TRGP) has a current EV/EBIT of 16.03. The 5-year average EV/EBIT is 14.33. The thresholds are as follows: Strongly Undervalued below 9.94, Undervalued between 9.94 and 12.13, Fairly Valued between 16.52 and 12.13, Overvalued between 16.52 and 18.71, and Strongly Overvalued above 18.71. The current Forward EV/EBIT of 16.03 falls within the Historic Trend Line -Fairly Valued range.
2.24
PS
Targa Resources Corp. (TRGP) has a current PS of 2.24. The 5-year average PS is 1.11. The thresholds are as follows: Strongly Undervalued below 0.03, Undervalued between 0.03 and 0.57, Fairly Valued between 1.65 and 0.57, Overvalued between 1.65 and 2.20, and Strongly Overvalued above 2.20. The current Forward PS of 2.24 falls within the Strongly Overvalued range.
9.12
P/OCF
Targa Resources Corp. (TRGP) has a current P/OCF of 9.12. The 5-year average P/OCF is 6.91. The thresholds are as follows: Strongly Undervalued below 2.66, Undervalued between 2.66 and 4.79, Fairly Valued between 9.04 and 4.79, Overvalued between 9.04 and 11.16, and Strongly Overvalued above 11.16. The current Forward P/OCF of 9.12 falls within the Overvalued range.
51.35
P/FCF
Targa Resources Corp. (TRGP) has a current P/FCF of 51.35. The 5-year average P/FCF is 26.87. The thresholds are as follows: Strongly Undervalued below -0.23, Undervalued between -0.23 and 13.32, Fairly Valued between 40.41 and 13.32, Overvalued between 40.41 and 53.96, and Strongly Overvalued above 53.96. The current Forward P/FCF of 51.35 falls within the Overvalued range.
Targa Resources Corp (TRGP) has a current Price-to-Book (P/B) ratio of 14.29. Compared to its 3-year average P/B ratio of 10.63 , the current P/B ratio is approximately 34.45% higher. Relative to its 5-year average P/B ratio of 8.66, the current P/B ratio is about 64.93% higher. Targa Resources Corp (TRGP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.08%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.99% , the current FCF yield is about -100.00% lower.
14.29
P/B
Median3y
10.63
Median5y
8.66
1.70
FCF Yield
Median3y
3.08
Median5y
6.99
Competitors Valuation Multiple
The average P/S ratio for TRGP's competitors is , providing a benchmark for relative valuation. Targa Resources Corp Corp (TRGP) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 8.13%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TRGP increased by 0.85% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.89B to 4.20B.
The secondary factor is the Margin Expansion, contributed 0.43%to the performance.
Overall, the performance of TRGP in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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