TRGP PE Ratio & Valuation,Is TRGP Overvalued

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 19.79 is considered Fairly compared with the five-year average of 17.87. The fair price of Targa Resources Corp (TRGP) is between 139.19 to 202.87 according to relative valuation methord.

Relative Value

Fair Zone

139.19-202.87

Current Price：183.19

Fair

19.79

10.88

EV/EBITDA

Targa Resources Corp. (TRGP) has a current EV/EBITDA of 10.88. 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 11.12 and 8.32, Overvalued between 11.12 and 12.52, and Strongly Overvalued above 12.52. The current Forward EV/EBITDA of 10.88 falls within the Historic Trend Line -Fairly Valued range.

16.49

EV/EBIT

Targa Resources Corp. (TRGP) has a current EV/EBIT of 16.49. The 5-year average EV/EBIT is 14.33. The thresholds are as follows: Strongly Undervalued below 9.94, Undervalued between 9.94 and 12.14, Fairly Valued between 16.53 and 12.14, Overvalued between 16.53 and 18.73, and Strongly Overvalued above 18.73. The current Forward EV/EBIT of 16.49 falls within the Historic Trend Line -Fairly Valued range.

2.34

Targa Resources Corp. (TRGP) has a current PS of 2.34. The 5-year average PS is 1.12. The thresholds are as follows: Strongly Undervalued below 0.03, Undervalued between 0.03 and 0.57, Fairly Valued between 1.67 and 0.57, Overvalued between 1.67 and 2.22, and Strongly Overvalued above 2.22. The current Forward PS of 2.34 falls within the Strongly Overvalued range.

9.51

P/OCF

Targa Resources Corp. (TRGP) has a current P/OCF of 9.51. The 5-year average P/OCF is 6.94. The thresholds are as follows: Strongly Undervalued below 2.70, Undervalued between 2.70 and 4.82, Fairly Valued between 9.06 and 4.82, Overvalued between 9.06 and 11.19, and Strongly Overvalued above 11.19. The current Forward P/OCF of 9.51 falls within the Overvalued range.

72.94

P/FCF

Targa Resources Corp. (TRGP) has a current P/FCF of 72.94. The 5-year average P/FCF is 27.51. The thresholds are as follows: Strongly Undervalued below -1.66, Undervalued between -1.66 and 12.92, Fairly Valued between 42.10 and 12.92, Overvalued between 42.10 and 56.68, and Strongly Overvalued above 56.68. The current Forward P/FCF of 72.94 falls within the Strongly Overvalued range.

Targa Resources Corp (TRGP) has a current Price-to-Book (P/B) ratio of 14.54. Compared to its 3-year average P/B ratio of 10.71 , the current P/B ratio is approximately 35.72% higher. Relative to its 5-year average P/B ratio of 8.73, the current P/B ratio is about 66.48% higher. Targa Resources Corp (TRGP) has a Forward Free Cash Flow (FCF) yield of approximately 1.63%. Compared to its 3-year average FCF yield of 3.00%, the current FCF yield is approximately -45.47% lower. Relative to its 5-year average FCF yield of 6.97% , the current FCF yield is about -76.55% lower.

14.54

P/B

Median3y

10.71

Median5y

8.73

1.63

FCF Yield

Median3y

3.00

Median5y

6.97

Competitors Valuation Multiple

The average P/S ratio for TRGP's competitors is 2.90, providing a benchmark for relative valuation. Targa Resources Corp Corp (TRGP) exhibits a P/S ratio of 2.34, which is -19.52% above the industry average. Given its robust revenue growth of 8.13%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TRGP increased by 2.63% 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.

8.13%

3.89B → 4.20B

Revenue Growth

0.43%

11.53 → 11.58

Margin Expansion

-5.93%

26.25 → 24.70

P/E Change

2.63%

178.50 → 183.19

Mkt Cap Growth

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Frequently Asked Questions

Is Targa Resources Corp (TRGP) currently overvalued or undervalued?

What is Targa Resources Corp (TRGP) fair value?

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. The fair price of Targa Resources Corp (TRGP) is between 139.19 to 202.87 according to relative valuation methord.

How does TRGP's valuation metrics compare to the industry average?

What is the current P/B ratio for Targa Resources Corp (TRGP) as of Dec 15 2025?

As of Dec 15 2025, Targa Resources Corp (TRGP) has a P/B ratio of 14.54. This indicates that the market values TRGP at 14.54 times its book value.

What is the current FCF Yield for Targa Resources Corp (TRGP) as of Dec 15 2025?

As of Dec 15 2025, Targa Resources Corp (TRGP) has a FCF Yield of 1.63%. This means that for every dollar of Targa Resources Corp’s market capitalization, the company generates 1.63 cents in free cash flow.

What is the current Forward P/E ratio for Targa Resources Corp (TRGP) as of Dec 15 2025?

As of Dec 15 2025, Targa Resources Corp (TRGP) has a Forward P/E ratio of 19.79. This means the market is willing to pay $19.79 for every dollar of Targa Resources Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Targa Resources Corp (TRGP) as of Dec 15 2025?

As of Dec 15 2025, Targa Resources Corp (TRGP) has a Forward P/S ratio of 2.34. This means the market is valuing TRGP at $2.34 for every dollar of expected revenue over the next 12 months.

TRGP Valuation