Latest Ratios: P/E Ratio 33.2x · EV/EBITDA 15.7x · ROE 48.4%. (2008–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $60.7B | $39.7B | $39.5B | $19.6B | $17.0B | $11.9B | $6.1B | $9.5B | $8.1B | $10.0B | $10.4B |
| Enterprise Value | $78.1B | $57.0B | $53.6B | $32.5B | $28.3B | $18.4B | $13.7B | $17.0B | $14.5B | $14.9B | $15.2B |
| P/E Ratio → | 33.22 | 21.65 | 31.10 | 23.73 | 18.94 | — | — | — | — | — | — |
| P/S Ratio | 3.54 | 2.31 | 2.38 | 1.26 | 0.78 | 0.68 | 0.74 | 1.09 | 0.77 | 1.13 | 1.56 |
| P/B Ratio | 19.03 | 12.40 | 8.94 | 4.26 | 3.41 | 2.31 | 1.04 | 1.12 | 1.08 | 1.48 | 1.81 |
| P/FCF | 104.00 | 67.91 | 57.76 | 23.76 | 16.23 | 6.64 | 7.73 | — | — | — | 37.62 |
| P/OCF | 15.51 | 10.13 | 10.82 | 6.11 | 7.13 | 5.19 | 3.51 | 6.83 | 7.06 | 10.66 | 12.37 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.33 | 3.22 | 2.08 | 1.31 | 1.06 | 1.65 | 1.96 | 1.37 | 1.68 | 2.28 |
| EV / EBITDA | 15.74 | 11.50 | 12.25 | 9.23 | 7.90 | 6.83 | 6.41 | 14.63 | 10.84 | 13.16 | 15.39 |
| EV / EBIT | 22.67 | 17.08 | 19.82 | 12.36 | 13.43 | 22.33 | — | 58.51 | 44.79 | — | — |
| EV / FCF | — | 97.67 | 78.39 | 39.34 | 27.07 | 10.24 | 17.26 | — | — | — | 55.08 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.5% | 26.5% | 20.0% | 16.2% | 12.9% | 12.0% | 18.4% | 17.2% | 7.4% | 5.9% | 6.2% |
| Operating Margin | 20.1% | 20.1% | 17.7% | 14.0% | 11.5% | 10.4% | 15.3% | 2.2% | 4.9% | 3.6% | 3.4% |
| Net Profit Margin | 10.8% | 10.8% | 7.6% | 5.3% | 5.3% | 0.4% | -18.8% | -2.4% | 0.0% | 0.6% | -2.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 48.4% | 48.4% | 28.1% | 17.3% | 22.5% | 1.3% | -21.7% | -2.6% | 0.0% | 0.9% | -3.1% |
| ROA | 7.7% | 7.7% | 5.8% | 4.1% | 6.6% | 0.5% | -9.0% | -1.2% | 0.0% | 0.4% | -1.4% |
| ROIC | 13.2% | 13.2% | 12.3% | 9.7% | 13.3% | 10.9% | 6.4% | 1.0% | 3.0% | 2.2% | 1.5% |
| ROCE | 16.7% | 16.7% | 15.7% | 12.7% | 16.9% | 13.5% | 8.2% | 1.2% | 3.9% | 2.6% | 1.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 5.49 | 5.49 | 3.23 | 2.82 | 2.32 | 1.28 | 1.32 | 0.93 | 0.89 | 0.75 | 0.85 |
| Debt / EBITDA | 3.54 | 3.54 | 3.26 | 3.69 | 3.23 | 2.46 | 3.66 | 6.76 | 4.98 | 4.45 | 4.95 |
| Net Debt / Equity | — | 5.43 | 3.19 | 2.79 | 2.28 | 1.25 | 1.28 | 0.89 | 0.86 | 0.73 | 0.84 |
| Net Debt / EBITDA | 3.50 | 3.50 | 3.22 | 3.65 | 3.17 | 2.40 | 3.54 | 6.47 | 4.80 | 4.33 | 4.88 |
| Debt / FCF | — | 29.76 | 20.63 | 15.58 | 10.84 | 3.60 | 9.53 | — | — | — | 17.46 |
| Interest Coverage | 3.92 | 3.92 | 3.53 | 3.82 | 4.73 | 2.13 | -3.02 | 0.86 | 1.26 | -0.25 | -0.02 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.67 | 0.67 | 0.72 | 0.79 | 0.77 | 0.77 | 0.82 | 0.89 | 0.51 | 0.79 | 0.86 |
| Quick Ratio | 0.55 | 0.55 | 0.62 | 0.66 | 0.64 | 0.70 | 0.72 | 0.80 | 0.45 | 0.66 | 0.74 |
| Cash Ratio | 0.05 | 0.05 | 0.05 | 0.05 | 0.07 | 0.07 | 0.14 | 0.18 | 0.08 | 0.08 | 0.06 |
| Asset Turnover | — | 0.68 | 0.73 | 0.76 | 1.11 | 1.15 | 0.52 | 0.46 | 0.62 | 0.62 | 0.52 |
| Inventory Turnover | 29.33 | 29.33 | 39.79 | 35.22 | 47.97 | 100.05 | 37.19 | 44.46 | 59.36 | 40.78 | 45.27 |
| Days Sales Outstanding | — | 31.41 | 35.53 | 34.38 | 23.71 | 27.87 | 38.07 | 35.99 | 29.93 | 34.08 | 40.78 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 2.1% | 1.6% | 2.2% | 2.2% | 1.6% | 6.5% | 10.2% | 11.2% | 8.4% | 5.5% |
| Payout Ratio | 44.4% | 44.4% | 48.5% | 51.6% | 33.2% | 263.3% | — | — | 56768.8% | 1561.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 4.6% | 3.2% | 4.2% | 5.3% | — | — | — | — | — | — |
| FCF Yield | 1.0% | 1.5% | 1.7% | 4.2% | 6.2% | 15.1% | 12.9% | — | — | — | 2.7% |
| Buyback Yield | 1.1% | 1.6% | 1.9% | 1.9% | 7.0% | 0.4% | 4.4% | 0.1% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.4% | 3.7% | 3.5% | 4.1% | 9.2% | 2.0% | 10.8% | 10.3% | 11.3% | 8.4% | 5.5% |
| Shares Outstanding | — | $215M | $221M | $226M | $231M | $229M | $232M | $233M | $224M | $207M | $185M |
Includes 30+ ratios · 18 years · Updated daily
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Quick answers to the most common questions about buying TRGP stock.
Targa Resources Corp.'s current P/E ratio is 33.2x. The historical average is 37.1x. This places it at the 56th percentile of its historical range.
Targa Resources Corp.'s current EV/EBITDA is 15.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
Targa Resources Corp.'s return on equity (ROE) is 48.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.2%.
Based on historical data, Targa Resources Corp. is trading at a P/E of 33.2x. This is at the 56th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Targa Resources Corp.'s current dividend yield is 1.34% with a payout ratio of 44.4%.
Targa Resources Corp. has 26.5% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Targa Resources Corp.'s Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
High leverage and commodity volatility
Metrics are mathematically derived from official filings.
Margin Inflection Points to Pricing Power
Gross margin surged to 48.2% in 2026Q2 from 31.1% in 2026Q1, a 17.1 percentage point jump, according to the latest quarterly data, signaling strong commodity price realizations and operating leverage.
The 2026Q2 gross margin of 48.2% is the highest in the ten-quarter period, nearly double the 25.1% seen in 2024Q4. Operating margin also expanded to 27.8%, up from 20.7% sequentially, reflecting fixed cost absorption on higher volumes. However, historical margins have ranged from 19% to 48%, suggesting the current level may be cyclical rather than structural, and investors should monitor sustainability.
ROIC Lags Despite Strong ROE
ROE reached 21.6% in 2026Q2, but ROIC remained at 4.1%, according to reported figures, indicating that high leverage amplifies equity returns while underlying capital efficiency stays modest.
ROE has improved from 6.0% in 2024Q1 to 21.6% in 2026Q2, driven by a thin equity base and rising net income. In contrast, ROIC has hovered between 2.7% and 4.1% over the same period, suggesting that returns on total invested capital are not compounding significantly. The gap between ROE and ROIC highlights the balance sheet's leverage effect, and the modest ROIC may indicate that growth investments are not yet generating outsized returns.
Negative CCC Reflects Working Capital Leverage
Cash conversion cycle improved to -31 days in 2026Q2 from -5 days in 2024Q1, as per the latest data, driven by extended payables and efficient inventory management, indicating strong supplier leverage.
The negative CCC is primarily due to DPO of 81 days in 2026Q2, up from 42 days in 2024Q1, while DSO remained stable around 37 days. This suggests TRGP is effectively using supplier financing to fund operations, reducing the need for working capital. However, the improvement may also reflect timing of payments and could reverse if suppliers tighten terms, warranting monitoring of DPO trends.
Leverage Climbs to Precipitous Levels
Debt-to-equity surged to 5.16 in 2026Q2 from 2.87 in 2024Q1, with D/EBITDA at 11.6x, according to the latest balance sheet data, indicating a significant increase in financial risk.
Total debt reached $19.6B against equity of $3.7B, and interest coverage fell to 3.33x in 2026Q2 from 4.20x in 2025Q4, suggesting thinner coverage of interest expenses. The D/EBITDA of 11.6x is elevated relative to peers like WES at 12.06x and MPLX at 13.67x, but TRGP's absolute leverage is high. The recent goodwill spike to $2.1B may indicate acquisition-driven debt, and refinancing risk could emerge if commodity prices weaken.
Thin Liquidity Buffer Raises Concern
Current ratio fell to 0.77 in 2026Q2, with cash of only $132M against $19.6B in debt, according to the balance sheet data, indicating a tight liquidity position.
The quick ratio of 0.68 suggests that even without inventory, current assets cover only 68% of current liabilities, leaving little room for stress. While negative CCC provides some operational cash flow cushion, the low cash balance and high debt load imply that TRGP may rely on credit facilities or asset sales to meet near-term obligations. Investors should monitor liquidity metrics closely, especially if commodity prices decline.
ROE Overstates Underlying Performance
ROE of 21.6% in 2026Q2 is flattered by a thin equity base, as per the latest data, and may mislead investors about true earning power.
With equity of only $3.7B against $19.6B in debt, ROE is amplified by leverage, not operational efficiency. ROIC of 4.1% provides a more accurate picture of returns on all invested capital, which is modest. Analysts should focus on ROIC and pre-tax returns to assess the business's ability to generate value above its cost of capital, rather than relying on ROE alone.