TRGP
Targa Resources Corp.
$294.90
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 66.7% above fair value
You pay
$294.90
Bear
$141.50
Fair
$176.87
Bull
$212.24
Bear
$141.50
-52.0%
$8.52 × 17x P/E
Fair
$176.87
-40.0%
$8.52 × 21x P/E
Bull
$212.24
-28.0%
$8.52 × 25x P/E
Adjust Assumptions
20.8x
8.52$
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
34.6x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (34 analysts)
$328.46
Divergence from AlphaVal
46%
Summary
Applying a 21x P/E to adjusted EPS of $8.52, the base-case value is $176.87 per share.
Warnings
Wall Street's average price target is $328.46 (from 34 analysts). Our estimate is 46% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples