Targa Resources Corp. (Targa) provides midstream services and operates independent infrastructure in North America.
The company owns, operates, acquires, and develops a diversified portfolio of complementary domestic infrastructure assets.
Operatio…
Analysis
Hope premium
Targa Resources Corp. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 217.4×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 39% a year, against analyst forecasts of 18%. The market is pricing in far more than analysts expect: heroic expectations.
Growth is solid; the safety picture is stretched. The company scores 12/20 on our value-creation score: creating some value.
Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202325
65
2023202420252026
All-time high
65
Jun 2026
All-time low
25
Jan 2023
Average rank
47
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
20
44
79
74
Price/Earnings
8
5
20
7
Price/Book
1
1
1
5
Dividend Yield
35
21
34
33
Value (overall)
1
5
14
9
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.