Using the industry peer median P/E multiple (trailing + forward), Targa Resources Corp. (TRGP) has a fair value of $202.11 based on 4 comparable companies in the Oil & Gas Midstream industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Targa Resources Corp.TRGP | 54,002 | 29.5x | 25.0x |
| Occidental Petroleum CorporationOXY | 63,338 | 39.9x | 30.7x |
| ONEOK, Inc.OKE | 59,049 | 17.3x | 16.7x |
| Diamondback Energy, Inc.FANG | 57,076 | 35.3x | 16.3x |
| EQT CorporationEQT | 41,845 | 20.3x | 14.0x |
| Industry Median | 27.8x | 16.5x | |
| (*) Profit after tax | 1,844 | 2,161 | |
| Equity Value | 51,240 | 35,666 | |
| (/) Outstanding shares | 215 | 215 | |
| Fair Price | $238 | $166 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.