TRGP Targa Resources

energy · 2026-10-07

N/A

fair · 65

Owner-earnings value$52.24

Price$285.72

Margin of safety -81.7%

Returns on capital 18.0/30

Consistency 21.5/22

Margins / pricing power 8.8/16

Balance sheet 5.3/16

Cash conversion 5.6/10

Capital allocation 5.6/6

Median ROIC13.0%

Gross margin33.3%

Net debt / EBITDA3.2x

FCF conversion54%

Share count / yr-1.7%

Profitable years4/4

Owner earnings (TTM)	740.90M
Owner-earnings yield	1.2%
Free-cash-flow yield	1.2%
Growth used (normalized)	0.0%
Market-implied growth (reverse DCF)	25.0%
Terminal growth	3.0%
Discount rate (hurdle)	9.0%

Yr	Owner earnings	Growth	PV
1	740.90M	0.0%	679.72M
2	743.37M	0.3%	625.68M
3	748.33M	0.7%	577.84M
4	755.81M	1.0%	535.43M
5	765.89M	1.3%	497.77M
6	778.65M	1.7%	464.28M
7	794.22M	2.0%	434.47M
8	812.76M	2.3%	407.89M
9	834.43M	2.7%	384.19M
10	859.46M	3.0%	363.05M

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~25%/yr owner-earnings growth over 10y (reverse DCF); model credits 0%.

Date	Quality	Price	Value	MoS	Rating
2026-10-07	65	$285.72	$52.24	-81.7%	N/A
2026-09-03	65	$293.46	$52.24	-82.2%	N/A
2026-07-31	64	$268.34	$18.45	-93.1%	N/A
2026-07-02	64	$257.81	$18.45	-92.8%	N/A
2026-06-25	64	$266.32	$18.45	-93.1%	N/A
2026-06-23	64	$268.72	$18.45	-93.1%	N/A