Targa Resources Corp.
Targa Resources Corp. (NYSE: TRGP) is a publicly traded Delaware corporation formed in October 2005. Targa is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America.
$295.60
+$2.95 (+1.01%)
Price from 2 days ago
19.56% operating margin is respectable but not wide. ROIC at 14.69%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 3.9%, steady but not accelerating. Free cash flow declined 15% despite revenue growth, conversion is weakening.
At 28x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 15% versus the prior year, cash generation momentum has weakened.
28.3x earnings, 85.6x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$16.74B
▲ +3.9% YoY
Net Income (TTM)
$2.27B
▲ +46.6% YoY
Op. Margin
22.91%
▲ +3.1pp YoY
ROIC
14.58%
▲ +0.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$741M
▼ -14.6% YoY
Op. Cash Flow (TTM)
$4.29B
▲ +7.3% YoY
Net Debt
$20.24B
Cash & Equiv.
$132M
5Y CAGR: +15.6%
5Y CAGR: -5.9%
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SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 14 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Targa Resources (TRGP) overvalued?
At a P/E of 28.3 and a price-to-free-cash-flow of 85.6, Targa Resources (TRGP) trades above a two-stage DCF intrinsic value of about $-34.39 per share, so at $295.60 the stock looks overvalued (111.6% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Targa Resources scores 43/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.3%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Targa Resources's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-34.39 per share for TRGP, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-25.79. At today's $295.60, that puts the stock about 111.6% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Targa Resources a high-quality business?+
Targa Resources scores 43 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 22.9% operating margin and a 14.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Targa Resources (TRGP) pay a dividend, and how much?+
Yes, Targa Resources pays a regular dividend of about $3.79 per share per year (typically in quarterly installments), a yield of roughly 1.3% at the current price. That is a payout ratio of about 35.9% of earnings, so the dividend is amply covered by earnings. Targa Resources has grown the dividend at roughly 72.8% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TRGP's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Targa Resources a good stock to buy right now?+
That depends on valuation and quality together, not either alone. TRGP currently trades above its estimated intrinsic value and scores 43/100 on quality (mixed). It also yields about 1.3%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Natural Gas Transmission
Spot a number that looks wrong? Check it in TRGP's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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