Stock fact sheet · data as of
Targa Resources Corp. (TRGP): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Midstream · United States · Defensive
Is TRGP undervalued?
TRGP closed at 290.91 on 16 Oct 2026, more than 30% above the GLS average fair value of 153.51. Only 1 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between Graham Number (63.49) and Graham Growth (382.72). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files TRGP under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for TRGP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 63.49 | -78% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 382.72 | +32% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 150.94 | -48% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 172.24 | -41% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 183.39 | -37% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 92.05 | -68% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 66.21 | -77% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 117.04 | -60% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -91.67 | -132% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 329.54 | +13% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Targa Resources Corp. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability TRGP scores 6.4/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 8.9%, ROE 60.1%, ROA 7.3% - with debt at 5.72 times equity and a free-cash-flow yield of 1.2%. Debt of 5.72 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 1.55% at a payout ratio of 41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Logistics And Transportation 73%, Gathering And Processing 27% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 8.9% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 60.1% |
| Debt / equity | 5.72 | ROA | 7.3% |
| Free-cash-flow yield | 1.2% | Payout ratio | 41% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 63: Fair
A Wheel Score of 63 puts Targa Resources Corp. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 16/20, Moat 10/15, Premium 20/20 and Stability 18/20; the weakest part is Value (0/25).
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 17,848 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 882k shares a day on a market cap of $62.4B, with a beta of 0.72 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -90% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 10 / 15 | moat 6.4/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 18 / 20 | 882k shares/day, $62.4B cap, beta 0.72 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (before the open), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 30 Oct 2026 (1.25 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Midstream
The 12 companies below are the closest to Targa Resources Corp. by market cap within the Oil & Gas Midstream industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TRP TC Energy Corporation | 61.14 | 64.85 | +6% | 73Good | $63.7B |
| MPLX MPLX Lp | 57.12 | 67.89 | +16% | 77Good | $57.9B |
| LNG Cheniere Energy, Inc. | 279.15 | 507.09 | +45% | 87Prime | $57.7B |
| OKE ONEOK, Inc. | 90.65 | 115.64 | +22% | 78Good | $57.1B |
| ET Energy Transfer LP | 19.88 | 26.67 | +25% | 77Good | $68.5B |
| KMI Kinder Morgan, Inc. | 32.82 | 23.78 | -38% | 57Fair | $73.1B |
| EPD Enterprise Products Partners L.P. | 35.57 | 34.43 | -3% | 64Fair | $76.8B |
| WMB The Williams Companies, Inc. | 72.80 | 41.67 | -75% | 58Fair | $89.0B |
| ENB Enbridge Inc. | 46.83 | 42.08 | -11% | 53Fair | $104.4B |
| VG Venture Global, Inc. | 13.27 | 24.59 | +46% | 86Prime | $33.2B |
| CQP Cheniere Energy Partners, L.P. | 62.25 | 115.62 | +46% | 81Prime | $30.1B |
| PBA Pembina Pipeline Corporation | 48.52 | 41.17 | -18% | 51Fair | $28.2B |
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Start free See the Sunday ScanQuestions about TRGP
Is TRGP undervalued right now?
No: at 290.91 the stock trades 90% above the GLS average fair value of 153.51 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TRGP and what does it mean?
TRGP scores 63 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TRGP?
153.51 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Targa Resources Corp. report earnings next?
The next earnings report is due on 4 Nov 2026 (before the open), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TRGP have listed options, and how liquid are they?
Yes. The nightly snapshot found 592 listed contracts with 17,848 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.