Discounted Cash Flow

Targa Resources Corp.

TRGP · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $-254.2m $-187.3m $275.3m 73.7% $-1.80
2017 $-233.7m (8.1%) $54.0m (128.8%) $-358.0m (-230.0%) -23.1% (-131.4%) $-0.31 (82.8%)
2018 $10.5b (4586.1%) $1.6m (-97.0%) $-2.0b (-450.5%) 0.0% (100.1%) $-0.53 (-71.0%)
2019 $7.4b (-29.4%) $-209.2m (-13175.0%) $-1.5b (24.5%) -2.8% (-18629.4%) $-1.44 (-171.7%)
2020 $7.2b (-3.1%) $-1.6b (-642.8%) $792.9m (153.3%) -21.7% (-666.3%) $-7.26 (-404.2%)
2021 $16.1b (124.4%) $71.2m (104.6%) $1.8b (126.7%) 0.4% (102.0%) $-0.07 (99.0%)
2022 $19.8b (23.2%) $1.2b (1579.1%) $1.0b (-41.8%) 6.0% (1263.3%) $3.95 (5742.9%)
2023 $14.0b (-29.6%) $1.3b (12.6%) $826.2m (-21.1%) 9.6% (59.8%) $3.69 (-6.6%)
2024 $14.1b (1.3%) $1.3b (-2.5%) $683.9m (-17.2%) 9.3% (-3.7%) $5.77 (56.4%)
2025 $17.0b (20.5%) $1.9b (46.6%) $584.1m (-14.6%) 11.3% (21.7%) $8.52 (47.7%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model