Is Targa Resources Corp. overvalued or undervalued?

As of 17 October 2025, Targa Resources Corp. has moved from an expensive valuation grade to fair. Based on the current metrics, the company appears 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 favorable valuation relative to its growth prospects.
In comparison to peers, Targa's P/E ratio is lower than Atmos Energy Corp., which stands at 22.73, and is also more attractive than NiSource, Inc. at 19.70. Notably, Cheniere Energy Partners LP offers a more appealing valuation with a P/E of 15.72. Despite Targa's fair valuation, its recent stock performance has lagged behind the S&P 500, with a year-to-date return of -16.71% compared to the S&P 500's 13.30%. However, over the longer term, Targa has outperformed the S&P 500 with a remarkable 5-year return of 798.31%.