Cheniere Energy Inc (LNG) is undervalued and Targa Resources Corp (TRGP) is overvalued.
Against our estimates of intrinsic value, LNG trades at the wider discount: a margin of safety of +50%, against -245% for TRGP.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $574.99; the price of $286.60 is 50% below that value, and 74% of that value comes from beyond year five.
Leak Score 73/100 on 11 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $84.78; the price of $292.80 is 245% above that value, and 78% of that value comes from beyond year five.
Leak Score 50/100 on 12 of 12 signals
| Metric | LNG | TRGP |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $286.60 | $292.80 |
| Intrinsic value | $574.99 | $84.78 |
| Margin of safety | +50% | -245% |
| Leak Score | 73/100 (11/12) | 50/100 (12/12) |
| Market cap | $59.2B | $62.8B |
| Revenue growth, 5 years | 15.9% | 15.8% |
| Operating margin | 30.2% | 24.8% |
| Net margin | 13.2% | 13.2% |
| Return on equity | 45.1% | 72.2% |
| Debt to equity | 4.29 | 5.35 |
| P/E | 21.3x | 27.9x |
| Forward P/E | 16.2x | 23.6x |
| P/B | 9.6x | 17.2x |
| Dividend yield | 0.8% | 1.7% |