With a one year PEG ratio of 0.11, Targa Resources Corp is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than just 1.78% of US stocks.
Of note is the ratio of Targa Resources Corp's sales and general administrative expense to its total operating expenses; only 3.89% of US stocks have a lower such ratio.
In terms of twelve month growth in earnings before interest and taxes, Targa Resources Corp is reporting a growth rate of -2,980.41%; that's higher than only 0.73% of US stocks.
If you're looking for stocks that are quantitatively similar to Targa Resources Corp, a group of peers worth examining would be IDEX, ASRT, GPL, CORR, and PARR.
Targa Resources Corporation provides midstream natural gas and natural gas liquid (NGL) services in the United States. The company operates in two divisions, Gathering and Processing, and Logistics and Marketing. The company was founded in 2005 and is based in Houston, Texas.
TRGP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Targa Resources Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Targa Resources Corp ranked in the 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 8.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Targa Resources Corp ended up being:
44% of the company's capital comes from equity, which is greater than merely 16.69% of stocks in our cash flow based forecasting set.
Targa Resources Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.32. This coverage rate is greater than that of only 13.02% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Targa Resources Corp experienced a tax rate of about 18% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 77.09% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Targa Resources Corp? See DLNG, EPD, PEIX, IMO, and GLNG.
Co-produced with Long Player Targa Resources (TRGP), one of our favorite energy MLPs, proved to have an unusually volatile stock even given the performance of many stocks during the recent panic. But for those with patience the stock itself has been recovering nicely. After the last article entitled "Targa Resources:...
HOUSTON, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) ("Targa" or the "Company") announced today that representatives from the Company will participate in investor meetings at the U.S. Capital Advisors Midstream Conference via video conference on Tuesday, January 26, 2021. A copy of the slides used for the conference meetings will be available in the Investors section of the Company's website at www.targaresources.com, or by going to https://www.targaresources.com/investors/events. About Targa Resources Corp. Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary midstream ...
HOUSTON, Jan. 19, 2021 (GLOBE NEWSWIRE) -- Targa Resources Partners LP (the “Partnership”), a subsidiary of Targa Resources Corp. (NYSE: TRGP), and the Partnership’s subsidiary Targa Resources Partners Finance Corporation announced today the pricing of an upsized offering of $1.0 billion in aggregate principal amount of senior unsecured notes due 2032 (the “2032 Notes”). The 2032 Notes will accrue interest at a rate of 4% per annum, will mature on January 15, 2032, and were priced at par. The offering is expected to close on February 2, 2021, subject to customary closing conditions. The Partnership intends to use a portion of the net proceeds from the offering to fund the previously announced concurrent cash tender offer (the “Tender Offer”) of the Partnership’s 5 1/8% Senior Notes due ...