Targa Resources Corp (TRGP) is overvalued and Williams Cos Inc (WMB) is overvalued.
Both trade above our estimate of their intrinsic value. TRGP is the closer of the two: -127%, against -182% for WMB.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 7.9% (average of 2 methods) values the shares at $25.17; the price of $70.98 is 182% above that value, and 80% of that value comes from beyond year five.
Leak Score 38/100 on 10 of 12 signals
| Metric | TRGP | WMB |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $282.15 | $70.98 |
| Intrinsic value | $124.35 | $25.17 |
| Margin of safety | -127% | -182% |
| Leak Score | 45/100 (10/12) | 38/100 (10/12) |
| Market cap | $60.5B | $86.8B |
| Revenue growth, 5 years | 15.8% | 8.9% |
| Operating margin | 24.8% | 38.0% |
| Net margin | 13.2% | 24.9% |
| Return on equity | 72.2% | 24.0% |
| Debt to equity | 5.35 | 2.33 |
| P/E | 26.9x | 28.3x |
| Forward P/E | 22.9x | 27.6x |
| P/B | 16.6x | 6.6x |
| Dividend yield | 1.8% | 3.0% |