---
title: Targa Resources (TRGP) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/trgp
ticker: TRGP
as_of: 2026-10-17
sector: Energy
industry: Oil & Gas Midstream
---
# Targa Resources (TRGP)

Targa Resources (TRGP) closed at $294.90 on Oct 16, 2026, undervalued by 15% vs its model value of $348.79 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $294.90 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $348.79 |
| Price vs model | undervalued by 15% vs model |
| Range of that model | $187.63 – $1,139.23 |
| Market value | $63.2B |
| P/E (fiscal 2025) | 34.7 |
| Net margin (fiscal 2025) | 10.8% |
| Free cash flow (fiscal 2025) | $584.1M |
| Dividend yield (trailing twelve months) | 1.53% |
| Beta | 0.72 |
| Cost of capital (WACC) | 7.53% |
| Business classification | Mature & Stable (Moderate growth (~12% recent), Moderate margins (11% net margin), Highly cyclical earnings, High leverage (D/E 5.4x)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Best performing this year | #29 | +59.8% | https://sweetvaluelab.com/lists/best-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.53% |
| Dividends per share, last 12 months | $4.50 |
| Coverage | — |
| Raised | 4 years in a row |
| Growth over 5 years | 62.3% a year |
| Latest payment | $1.25, ex-date Jul 31, 2026, paid Aug 14, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Jul 29, 2021 | $0.40 |
| To Jul 28, 2022 | $1.15 |
| To Jul 28, 2023 | $1.70 |
| To Jul 31, 2024 | $2.50 |
| To Jul 31, 2025 | $3.50 |
| Trailing twelve months (to Jul 31, 2026) | $4.50 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $348.79 | $187.63 | $1,139.23 |
| DCF · Perpetuity growth · 10y | cross check | $528.19 | $295.19 | $1,665.08 |
| DCF · EBITDA exit · 5y | cross check | $404.59 | $238.65 | $600.96 |
| DCF · EBITDA exit · 10y | cross check | $584.57 | $345.97 | $907.61 |
| P/E · peers | cross check | $168.64 | $145.15 | $201.98 |
| P/E · own history | cross check | $288.47 | $221.52 | $325.57 |
| PEG | sanity check | $201.71 | $201.71 | $201.71 |
| EV/EBITDA · peers | cross check | $193.80 | $166.90 | $239.46 |
| EV/Revenue · peers | cross check | $199.45 | $69.76 | $363.28 |
| Earnings power value | cross check | $0.00 | $0.00 | $0.00 |
| Dividend discount | cross check | $117.25 | $78.11 | $188.03 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 9 open-market sales ($2.1M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 3, 2026 | Perkins Joe Bob | Director | Bona fide gift | 8,370 | $0 |
| Sep 1, 2026 | Secrest Brent B. | See Remarks | Grant / award | 10,000 | $0 |
| Sep 1, 2026 | Chung Paul W | Director | Open-market sell | 1,000 | $295,381 |
| Sep 1, 2026 | Chung Paul W | Director | Open-market sell | 816 | $242,352 |
| Aug 25, 2026 | CRISP CHARLES R | Director | Bona fide gift | 1,200 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Aug 25, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/1389170/000119312526364099/d135085d8k.htm |
| Aug 6, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1389170/000119312526337729/trgp-20260630.htm |
| Aug 6, 2026 | 8-K | 2.02 Results of Operations (Earnings); 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1389170/000119312526336525/trgp-20260806.htm |
| Jul 17, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1389170/000119312526306591/d125510d8k.htm |
| Jul 6, 2026 | 8-K | 1.01 Entry into a Material Agreement; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1389170/000119312526296255/d116740d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bill Nygren | 2026-06-30 | 7,937,530 | $2.1B |
| First Eagle | 2026-06-30 | 101 | $27,082 |

2 tracked managers in all.

## About

Targa Resources Corp., alongside its subsidiary Targa Resources Partners LP, is a significant entity in the North American midstream energy sector, focusing on the ownership, operation, acquisition, and development of crucial energy infrastructure assets. Its business is structured into two main divisions: "Gathering and Processing" and "Logistics and Transportation." Within these segments, the company undertakes a broad range of activities, including the collection, compression, treatment, processing, transport, and sale of natural gas. It also manages the storage, fractionation, treatment, transportation, and distribution of natural gas liquids (NGLs) and their associated products, providing services even to liquefied petroleum gas (LPG) exporters. Furthermore, Targa handles the gathering, storage, terminaling, purchasing, and selling of crude oil. Beyond these core operations, the com…

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Source: https://sweetvaluelab.com/stocks/trgp (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.