MeritValue

Targa Resources Corp.

TRGPdata completeness 100%17 fiscal years on file
The thesis, from the filings

Targa Resources Corp. earns about 9% on invested capital, and has bought back 5% of its shares over 5 years. The applicable estimate puts fair value near $62.68 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$16.1B1$19.8B2$13.5B2$14.1B2$17B3
Net income$71.2M4$1.2B5$1.35B6$1.31B6$1.92B6
Operating cash flow$2.3B7$2.38B8$3.21B9$3.65B9$3.92B9
Capital expenditure$505.1M10$1.33B11$2.39B12$2.97B12$3.33B12
Free cash flow (derived)$1.8B7$1.05B8$826.2M9$683.9M9$584.1M9
Total debt$6.75B13$11.5B14$13B15$14.2B16$17.4B16
Cash & equivalents$158.5M17$219M18$141.7M19$157.3M20$166.1M20
Diluted shares228.6M231.1M226.0M221.3M216.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$141.44
your share of equity
Profit it earned you last year
$88.66
Free cash flow it threw off
$26.93
Debt you’d be carrying
$803.71

10 shares is a claim on $141.44 of net worth that earned you $88.66 and generated $26.93 of cash last year, against $803.71 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
9% avg · 5y
FY21 5%FY22 11%FY23 10%FY24 9%FY25 10%

It earned an average 9% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−5% shares · 5y

Share count is down 5% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 158% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$683.9M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$683.9M
Earnings Power Value
$62.68
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.31B
  • growthAssumed0.0%
Graham Number
$51.98
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-015841 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-023983 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2025-12-31 · accession 0001193125-26-059296 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000950170-24-015841 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000950170-25-023983 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-059296 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-24-015841 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-25-023983 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001193125-26-059296 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000950170-24-015841 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000950170-25-023983 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001193125-26-059296 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0000950170-23-003797 (LongTermDebt)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-015841 (LongTermDebt)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-023983 (LongTermDebt)
  16. 10-K · period ending 2024-12-31 · accession 0001193125-26-059296 (LongTermDebt)
  17. 10-K · period ending 2021-12-31 · accession 0000950170-23-003797 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000950170-24-015841 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000950170-25-023983 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001193125-26-059296 (CashAndCashEquivalentsAtCarryingValue)