NYSE · TRGP

Targa Resources Corp.

Energy · Oil & Gas Midstream

$285.71▲ 0.33% ($0.94)today

As of 11:23 AM ET

52-week

$144.14$307.94

Market cap

$61.33B

P/E

What the market price implies · Reverse DCF

To support a price of $285.71, this model requires Stage 1 FCFF to grow by 8.04%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 13.28%/yr over the past 10 years. The required annual growth rate is 5.24 percentage points lower.

Selected forecast · Base scenario

13.28%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

8.04%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$285.71

Estimated value / share

$379.37

Base scenario

This estimate is 32.78% above the price used.

USD · TTM ending 2026-06-30

Interest expense not reported — cost of debt may be understated.

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

CapEx normalization was capped: company appears to be in a multi-year investment cycle. Median-based capex floor applied at 60% of TTM capex.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Reported total debt includes capitalised leases (~3% of the total). They are excluded from net debt and from the WACC weights because rent is already charged inside operating income. The Net Debt shown here is therefore lower than the balance-sheet figure elsewhere on this page.

Stage 1 13.28% · Stage 2 7.3% · Discount rate 7.92%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 17, 2026, 3:23 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 17, 2026, 3:24 PM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 6 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 48.9%.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inModerate confidence

1Y Price: 71.6%Revenue (TTM): -2.2%FCF (TTM): 73.31%P/FCF: 89th pct

What changed

The stock rose 71.6% over the last year. Revenue declined 2.2% over the trailing twelve months. Operating margin moved from 18.11% to 23.13%. Free cash flow grew 73.31% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (89th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 23.13% — continued expansion would be needed to justify the premium. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

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.

CEOMatthew J. Meloy

SectorEnergy

IndustryOil & Gas Midstream

Employees3,570

IPO dateDec 7, 2010

https://www.targaresources.com

Market multiples

Forward P/E—

EV/EBITDA11.75

Enterprise value$57.05B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth10.28%

Gross margin (FY2025)26.51%▲6.5ppvs FY2024

Operating margin (FY2025)20.11%▲2.4ppvs FY2024

ROE72.53%▲7.4ppvs FY2025

Analyst consensus

RatingBuy

Target price$315.15▲10.30%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $2.66 · Revenue est $4.87B

View

Dividends

$4.50/shareQuarterly5yr growth streakStretched

TRGP pays a dividend with a 1.58% dividend yield, 5 consecutive years of growth, growing at 62.27% annually, covered 0.7× by free cash flow.

Dividend Yield

1.58%

Annual Div / Share

$4.50

5yr CAGR

+62.27%

Doubles every ~1.4yr

Payout Ratio

40.68%

Stretched

Dividend Growth Rate

3yr CAGR

+38.33%

5yr CAGR

+62.27%

10yr CAGR

+2.14%

Dividend Safety

5/10Stretched

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$4.50+28.6%

2025$3.50+40.0%

2024$2.50+47.1%

2023$1.70+47.8%

2022$1.15+187.5%

2021$0.40-80.2%

2020$2.02-44.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$16/yr

$1/mo

In 5 yrs

$28/yr+76%

$2/mo

In 10 yrs

$49/yr+211%

$4/mo

Today	In 5 yrs	In 10 yrs
$16/yr $1/mo	$28/yr+76% $2/mo	$49/yr+211% $4/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 1.58% → 4.89% over 10yr

Analysis

Dividend Strengths

Strong dividend growth rate

The 5-year CAGR of 62.27% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

Dividend exceeds free cash flow

Free cash flow covers only 0.71× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.

NYSE · TRGP

Targa Resources Corp.

Energy · Oil & Gas Midstream

$285.71▲ 0.33% ($0.94)today

As of 11:23 AM ET

52-week

$144.14$307.94

Market cap

$61.33B

P/E

What the market price implies · Reverse DCF

To support a price of $285.71, this model requires Stage 1 FCFF to grow by 8.04%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 13.28%/yr over the past 10 years. The required annual growth rate is 5.24 percentage points lower.

Selected forecast · Base scenario

13.28%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

8.04%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$285.71

Estimated value / share

$379.37

Base scenario

This estimate is 32.78% above the price used.

USD · TTM ending 2026-06-30

Interest expense not reported — cost of debt may be understated.

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

CapEx normalization was capped: company appears to be in a multi-year investment cycle. Median-based capex floor applied at 60% of TTM capex.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Stage 1 13.28% · Stage 2 7.3% · Discount rate 7.92%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 17, 2026, 3:23 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 17, 2026, 3:24 PM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 6 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 48.9%.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inModerate confidence

1Y Price: 71.6%Revenue (TTM): -2.2%FCF (TTM): 73.31%P/FCF: 89th pct

What changed

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (89th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

CEOMatthew J. Meloy

SectorEnergy

IndustryOil & Gas Midstream

Employees3,570

IPO dateDec 7, 2010

https://www.targaresources.com

Market multiples

Forward P/E—

EV/EBITDA11.75

Enterprise value$57.05B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth10.28%

Gross margin (FY2025)26.51%▲6.5ppvs FY2024

Operating margin (FY2025)20.11%▲2.4ppvs FY2024

ROE72.53%▲7.4ppvs FY2025

Analyst consensus

RatingBuy

Target price$315.15▲10.30%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $2.66 · Revenue est $4.87B

View

Dividends

$4.50/shareQuarterly5yr growth streakStretched

TRGP pays a dividend with a 1.58% dividend yield, 5 consecutive years of growth, growing at 62.27% annually, covered 0.7× by free cash flow.

Dividend Yield

1.58%

Annual Div / Share

$4.50

5yr CAGR

+62.27%

Doubles every ~1.4yr

Payout Ratio

40.68%

Stretched

Dividend Growth Rate

3yr CAGR

+38.33%

5yr CAGR

+62.27%

10yr CAGR

+2.14%

Dividend Safety

5/10Stretched

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$4.50+28.6%

2025$3.50+40.0%

2024$2.50+47.1%

2023$1.70+47.8%

2022$1.15+187.5%

2021$0.40-80.2%

2020$2.02-44.5%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$16/yr

$1/mo

In 5 yrs

$28/yr+76%

$2/mo

In 10 yrs

$49/yr+211%

$4/mo

Today	In 5 yrs	In 10 yrs
$16/yr $1/mo	$28/yr+76% $2/mo	$49/yr+211% $4/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 1.58% → 4.89% over 10yr

Analysis

Dividend Strengths

Strong dividend growth rate

The 5-year CAGR of 62.27% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

Dividend exceeds free cash flow

Free cash flow covers only 0.71× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.