Is Targa Resources Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Targa Resources Corp. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA ratio of 11.66, and a PEG ratio of 0.35, indicating a potentially attractive valuation relative to its growth prospects.
In comparison to peers, Targa Resources Corp. has a lower P/E ratio than Atmos Energy Corp. at 22.73 and a more favorable PEG ratio compared to Cheniere Energy Partners LP, which stands at 0.63. Notably, Targa's return over the past three years is 124.98%, significantly outperforming the S&P 500's 81.19%, although it has underperformed in the shorter term with a year-to-date return of -16.71% compared to the S&P 500's 13.30%.