Is Targa Resources Corp. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Targa Resources Corp. has moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 19, an EV to EBITDA of 11.66, and a PEG ratio of 0.35, indicating a reasonable valuation relative to its growth prospects.
In comparison to its peers, Targa Resources Corp. has a lower P/E ratio than Atmos Energy Corp., which stands at 22.73, and a more favorable PEG ratio compared to Cheniere Energy Partners LP, which has a PEG of 0.63. Notably, Targa's return over the last three years has been 147.48%, significantly outperforming the S&P 500's return of 70.41% during the same period, reinforcing the attractiveness of its current valuation.