TRGP Valuation

Targa Resources Corp

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167.760

+0.8(0.479%)1D

Overview
Forecast
Valuation
Earnings

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 19.47 is considered Fairly compared with the five-year average of 18.19. The fair price of Targa Resources Corp (TRGP) is between 130.32 to 193.49 according to relative valuation methord.

Relative Value

Fair Zone

130.32-193.49

Current Price：167.76

Fair

19.47

Trailing

Forward

10.61

EV/EBITDA

Targa Resources Corp. (TRGP) has a current EV/EBITDA of 10.61. The 5-year average EV/EBITDA is 9.67. The thresholds are as follows: Strongly Undervalued below 6.87, Undervalued between 6.87 and 8.27, Fairly Valued between 11.06 and 8.27, Overvalued between 11.06 and 12.46, and Strongly Overvalued above 12.46. The current Forward EV/EBITDA of 10.61 falls within the Historic Trend Line -Fairly Valued range.

16.41

EV/EBIT

Targa Resources Corp. (TRGP) has a current EV/EBIT of 16.41. The 5-year average EV/EBIT is 14.24. The thresholds are as follows: Strongly Undervalued below 9.87, Undervalued between 9.87 and 12.05, Fairly Valued between 16.42 and 12.05, Overvalued between 16.42 and 18.61, and Strongly Overvalued above 18.61. The current Forward EV/EBIT of 16.41 falls within the Historic Trend Line -Fairly Valued range.

1.73

Targa Resources Corp. (TRGP) has a current PS of 1.73. The 5-year average PS is 1.03. The thresholds are as follows: Strongly Undervalued below -0.02, Undervalued between -0.02 and 0.51, Fairly Valued between 1.55 and 0.51, Overvalued between 1.55 and 2.08, and Strongly Overvalued above 2.08. The current Forward PS of 1.73 falls within the Overvalued range.

8.84

P/OCF

Targa Resources Corp. (TRGP) has a current P/OCF of 8.84. The 5-year average P/OCF is 6.61. The thresholds are as follows: Strongly Undervalued below 2.05, Undervalued between 2.05 and 4.33, Fairly Valued between 8.89 and 4.33, Overvalued between 8.89 and 11.16, and Strongly Overvalued above 11.16. The current Forward P/OCF of 8.84 falls within the Historic Trend Line -Fairly Valued range.

39.98

P/FCF

Targa Resources Corp. (TRGP) has a current P/FCF of 39.98. The 5-year average P/FCF is 24.85. The thresholds are as follows: Strongly Undervalued below -2.06, Undervalued between -2.06 and 11.40, Fairly Valued between 38.31 and 11.40, Overvalued between 38.31 and 51.76, and Strongly Overvalued above 51.76. The current Forward P/FCF of 39.98 falls within the Overvalued range.

Targa Resources Corp (TRGP) has a current Price-to-Book (P/B) ratio of 13.97. Compared to its 3-year average P/B ratio of 10.07 , the current P/B ratio is approximately 38.75% higher. Relative to its 5-year average P/B ratio of 8.04, the current P/B ratio is about 73.70% higher. Targa Resources Corp (TRGP) has a Forward Free Cash Flow (FCF) yield of approximately 1.18%. Compared to its 3-year average FCF yield of 3.74%, the current FCF yield is approximately -68.38% lower. Relative to its 5-year average FCF yield of 7.11% , the current FCF yield is about -83.34% lower.

13.97

P/B

Median3y

10.07

Median5y

8.04

1.18

FCF Yield

Median3y

3.74

Median5y

7.11

Competitors Valuation Multiple

The average P/S ratio for TRGP's competitors is 2.87, providing a benchmark for relative valuation. Targa Resources Corp Corp (TRGP) exhibits a P/S ratio of 1.73, which is -39.85% above the industry average. Given its robust revenue growth of 11.26%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Cheniere Energy Partners LP

Performance Decomposition

Market capitalization of TRGP increased by 13.86% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.92 to 15.83.

The secondary factor is the Revenue Growth, contributed 11.26%to the performance.

Overall, the performance of TRGP in the past 1 year is driven by Margin Expansion. Which is more sustainable.

11.26%

3.62B → 4.03B

Revenue Growth

59.58%

9.92 → 15.83

Margin Expansion

-56.98%

55.93 → 24.06

P/E Change

13.86%