TRGP is now overvalued and could go down -38%

Based on our analysis, Targa Resources has received an overvalued rating of 1 out of 5 stars from Cashu. Several financial metrics indicate that the company may not be a sound investment at its current valuation. The Price-to-Earnings (PE) ratio for Targa Resources stands at 27.12, which is significantly higher than the sector average of 9.53. A higher PE ratio can imply that the stock is overvalued relative to its earnings, suggesting that investors are paying much more for each dollar of earnings compared to industry peers. Additionally, the Price-to-Book (PB) ratio is reported at 15.01, while the sector average is only 1.55. This ratio indicates how much investors are willing to pay for each dollar of net assets. Targa’s high PB ratio suggests that the market may be overestimating the company’s asset value, which could lead to potential losses if corrections occur. The dividend yield for Targa Resources is 1.73%, compared to the sector average of 3.85%. A lower dividend yield may indicate that the company is not returning as much value to shareholders through dividends as its competitors, which can be a red flag for income-focused investors. While Targa Resources shows strong figures in net profit margin and return on equity, the concerning valuation metrics suggest that the stock may not be a prudent investment choice at this time. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.