Targa Resources Corp., together with its subsidiaries, owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (5 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $60.71 Implied EV: $32.46B |
What growth rate is the market pricing in at $315?
The market implies +18.8% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +35.6%, reflecting heavy growth investment.
Narrow moat with roic consistency as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price far exceeds estimated intrinsic value amid market euphoria — extreme risk of capital loss
