Is Targa Resources Corp. overvalued or undervalued?

As of 17 October 2025, Targa Resources Corp. has moved from expensive to fair in its valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 19, an EV to EBITDA of 11.66, and a PEG ratio of 0.35, indicating strong growth potential relative to its price. In comparison to peers, Cheniere Energy Partners LP shows a more attractive P/E of 15.72 and an EV to EBITDA of 11.33, while Atmos Energy Corp. is considered very expensive with a P/E of 22.73.
Despite Targa's fair valuation, it has underperformed against the S&P 500 in the short term, 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 delivered impressive returns of 798.31% over the past five years, significantly outpacing the S&P 500's 91.29%.