Energy · Oil & Gas Storage & Transportation · US stock · price as of 16 Oct 2026
Key indicators
Price
$294.90
52-week range
$141.11 – $307.94
Market cap
$63.5B
P/E (trailing)
28.1×
EV / EBITDA
15.0×
Free-cash-flow yield
1.2%
Dividend yield
1.5%
Revenue (last 12 months)
$16.7B
Revenue growth (3y a year)
−6.6%
Operating margin
22.9%
Return on invested capital
13.4%
Net debt / EBITDA
3.4×
Fair value
Blended fair value$55.70 range $49 – $69
Versus priceData under review+0% to fair value
Peer multiples
$39.45
Fundamentals-adjusted multiple
$70.38
10-year DCF (market-scaled)
$57.27
Earnings power value (floor, not blended)
n/m
Model uncertainty
High
X-Ray Score
42/ 100 · High confidence · ahead of 15% of sector peers
Valuation10
Growth60
Profitability57
Financial health43
Dividends45
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Targa Resources owns midstream infrastructure that gathers, processes and moves natural gas and natural gas liquids. Its pipelines and plants in the Permian Basin and other producing regions collect gas from producers, remove liquids such as ethane and propane, and deliver them to fractionation facilities, storage and export terminals. Customers are oil and gas producers, petrochemical companies, utilities and exporters.
Targa earns revenue mostly from fees for gathering, processing, transporting and fractionating, plus income from the gas and liquids it markets. The last twelve months produced $16.7 billion, though revenue growth over the last three years was -6.6% a year, a decline. The operating margin is 22.9%, and the business earns a profit of 13% on the capital invested in it. It has net debt of 3.4 times EBITDA. A dividend is paid, with a yield of 1.5%.
StocksXray gives Targa Resources Corp. an X-Ray Score of 42 out of 100 (high confidence), ahead of 15% of the S&P 500 stocks in its sector. Its strongest lens is growth (60) and its weakest is valuation (10).
Our fair value blend is $55.70 (range $48.60 to $69.06). At $294.90 the stock trades 429% above that blend, so the label is "Data under review" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Targa Resources Corp. (TRGP)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$47.10
$67.68
$81.90
$172.09
$181.82
$294.90
Market cap
$10.8B
$15.6B
$18.5B
$38.1B
$39.4B
$63.5B
P/E
–
17.4×
22.4×
30.0×
21.4×
28.1×
EV / revenue
1.2×
1.4×
2.0×
3.3×
3.3×
4.9×
EV / EBITDA
11.7×
10.1×
8.2×
13.0×
11.6×
15.0×
Price / free cash flow
6.0×
14.9×
22.4×
55.7×
67.5×
85.7×
Free-cash-flow yield
16.7%
6.7%
4.5%
1.8%
1.5%
1.2%
Price / book
5.4×
5.9×
6.8×
14.7×
12.9×
17.4×
Dividend yield
0.85%
2.07%
2.26%
1.60%
2.06%
1.53%
Fundamentals checklist ● 4 Good · ● 6 Average · ● 6 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−7.1%Average
Free-cash-flow yield1.2%Bad
Risk models
Altman Z score1.2×Bad
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)29.8%Good
Free-cash-flow growth (3y)−17.7%Average
Revenue growth (3y)−6.6%Average
Growth consistency60%Average
Balance sheet
Current ratio0.8×Bad
Net debt / EBITDA3.4×Bad
Interest coverno interest costGood
Valuation
Fair value vs price0.2×Bad
EBIT / EV yield4.6%Bad
Profitability
Return on invested capital13.4%Good
Operating margin22.9%Average
Gross profitability25.4%Good
Red flags
Dividend may be at risk — Dividends exceed free cash flow
XStocksXray
Targa Resources Corp. (TRGP)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
16,950
20,930
16,060
16,382
17,028
16,742
Gross profit
3,220
4,048
5,384
5,679
6,521
7,231
Operating income
865
1,729
2,626
2,695
3,331
3,836
Net income
71
1,196
1,346
1,312
1,923
2,268
Diluted EPS ($)
-0.07
3.88
3.66
5.74
8.49
10.50
Free cash flow
1,798
1,047
826
684
584
741
Gross margin
19.0%
19.3%
33.5%
34.7%
38.3%
43.2%
Operating margin
5.1%
8.3%
16.4%
16.5%
19.6%
22.9%
Net margin
0.4%
5.7%
8.4%
8.0%
11.3%
13.5%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
15,208
19,560
20,672
22,734
25,218
28,515
Cash
159
219
142
157
166
132
Total debt
6,584
10,702
12,333
13,787
16,662
19,020
Equity
2,012
2,666
2,740
2,592
3,068
3,657
Dividend per share ($)
0.40
1.40
1.85
2.75
3.75
4.25
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.