What is Targa Resources Corp. (TRGP) DCF Fair Value and Intrinsic Value in 2026?

Targa Resources Corp. (TRGP) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Targa Resources Corp.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Targa Resources Corp. operates in the Energy sector (Oil & Gas Midstream) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Targa Resources Corp.'s financial health rating and Piotroski F-Score?

Targa Resources Corp.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Targa Resources Corp. (TRGP) for quarterly SEC filing thesis breaks?

LocalAlpha audits Targa Resources Corp.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksTRGP

TRGP

Targa Resources, Inc.Energy / Oil & Gas MidstreamINTACT

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. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. The company also leased and owned railcars, tractors, vacuum trucks and pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.

Share Price

$294.04

52W: $144.14 - $307.94

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

28.1x

ROIC

20.9%

Operating Margin

27.8%

FCF Yield

0.1%

Debt / Equity

5.16x

Piotroski Score

6/9

Altman Z-Score

3.23

Market Cap

$63.1B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($281.63) Graham Number ($58.60)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$294.04

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$100M

$100M$66M (Reported)$50,000M

Stage 1 Growth (Years 1-5)13.9%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$19,500M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$1.1B

PV of Terminal Value

$1.6B

Implied Enterprise Value

$2.7B

Implied Equity Value

$-16.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$114	$130	$148	$168	$192	$200	$209	$219	$229	$239
Present Value (PV)	$105	$109	$114	$119	$125	$119	$115	$110	$105	$101

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-401.7% Premium

$58.61

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $10.45BVPS: $14.61

Revised Graham Formula-4.4% Premium

$281.63

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings0.1% Yield

$0.29 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.1BYield: 0.1%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER

61.4% CAGR (Next 10 Yrs)

At the current price of $294.04, the market is assuming the business will compound Free Cash Flow at 61.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil TRGP with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Targa Resources, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 27.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Targa Resources, Inc. (TRGP) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Targa Resources, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Targa Resources, Inc. has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $294.04. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $58.60.