What is Targa Resources Corp. worth?
With the base-case assumptions below, a discounted cash flow model on Targa Resources Corp.'s reported free cash flow gives -$0.68 per share. The share price was $277.84 on September 25, 2026, 40,972% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 10.0% | 10.0% | -$35.59 | -113% |
| Base | 15.0% | 9.0% | -$0.68 | -100% |
| Bull | 20.0% | 8.0% | $64.33 | -77% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $25.75 | $34.00 | $44.07 | $56.66 | $72.85 |
| 8.0% | $5.90 | $11.24 | $17.56 | $25.14 | $34.40 |
| 9.0% | -$8.55 | -$4.90 | -$0.68 | $4.24 | $10.05 |
| 10.0% | -$19.51 | -$16.91 | -$13.96 | -$10.60 | -$6.71 |
| 11.0% | -$28.08 | -$26.17 | -$24.04 | -$21.65 | -$18.93 |
Where the presets come from
Base: years 1 to 5 grow at Targa Resources Corp.'s revenue growth rate over the last 5 fiscal years (15.6% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions