Targa Resources Corp. (TRGP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-117.8%

-$48.47

vs $272.11 price

Levered DCF

$9.46

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.44

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.6×	30.94×	23.54×	18.61×	-742.05×	-3.63×	-28.42×	-67.69×
P/B	12.93×	15.16×	7.12×	6.27×	5.94×	2.31×	1.93×	1.33×
P/S	2.31×	2.36×	1.25×	0.77×	0.68×	0.74×	1.09×	0.77×
EV / EBITDA	11.75×	12.94×	8.18×	8.75×	10.86×	-43.21×	13.49×	12.73×
Gross margin	26.5%	20.0%	16.2%	12.9%	12.0%	18.4%	17.2%	7.4%
Operating margin	20.1%	17.7%	14.0%	11.5%	10.4%	15.3%	2.2%	4.9%
Net margin	10.8%	7.6%	5.3%	5.3%	0.4%	-18.8%	-2.4%	0.0%
Current ratio	0.67×	0.72×	0.79×	0.77×	0.77×	0.82×	0.89×	0.51×
Debt / equity	5.72×	5.5×	4.75×	4.34×	3.3×	2.94×	1.6×	1.1×
Interest coverage	4.04×	3.84×	3.18×	5.57×	4.69×	3.23×	0.57×	2.01×
Dividend yield	2.1%	1.6%	2.2%	2.3%	1.6%	6.5%	10.2%	11.2%
Payout ratio	44.4%	48.5%	51.6%	33.2%	263.3%	-25.5%	-461.2%	56768.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	60.1%	49.0%	30.2%	42.9%	3.5%	-58.6%	-4.3%	0.0%
Return on invested capital	12.1%	11.8%	9.6%	13.2%	13.5%	7.4%	-1.0%	3.1%
Return on assets	7.3%	5.6%	4.0%	5.8%	0.5%	-9.8%	-1.1%	0.0%
Free cash flow yield	1.5%	1.7%	4.2%	6.3%	15.1%	12.9%	-15.7%	-24.4%
Earnings yield	4.6%	3.2%	4.2%	6.8%	0.6%	-25.4%	-2.2%	0.0%
Enterprise value	$57B	$53.4B	$32.4B	$28.1B	$18.4B	$13.7B	$17B	$14.5B
Net debt / EBITDA	3.58×	3.42×	3.25×	3.54×	3.82×	-23.87×	5.97×	5.64×
Cash conversion cycle (days)	-10	-11	1	3	-2	3	-4	-9