Enterprise Products Partners L P (EPD) is slightly undervalued and Targa Resources Corp (TRGP) is overvalued.
Against our estimates of intrinsic value, EPD trades at the wider discount: a margin of safety of +13%, against -127% for TRGP.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.7% (average of 3 methods) values the shares at $43.82; the price of $38.01 is 13% below that value, and 81% of that value comes from beyond year five.
Leak Score 54/100 on 9 of 12 signals
Discounting its cash flows at 9.0% (average of 3 methods) values the shares at $124.35; the price of $282.15 is 127% above that value, and 76% of that value comes from beyond year five.
Leak Score 45/100 on 10 of 12 signals
| Metric | EPD | TRGP |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $38.01 | $282.15 |
| Intrinsic value | $43.82 | $124.35 |
| Margin of safety | +13% | -127% |
| Leak Score | 54/100 (9/12) | 45/100 (10/12) |
| Market cap | $82.1B | $60.5B |
| Revenue growth, 5 years | 14.3% | 15.8% |
| Operating margin | 12.5% | 24.8% |
| Net margin | 10.7% | 13.2% |
| Return on equity | 21.1% | 72.2% |
| Debt to equity | 1.13 | 5.35 |
| P/E | 13.2x | 26.9x |
| Forward P/E | 11.9x | 22.9x |
| P/B | 2.7x | 16.6x |
| Dividend yield | 5.9% | 1.8% |