The bullet graph indeed is a space-efficient and more informative alternative for the useless gauges that we see too often.
Bullet graphs can be made in Excel with a stacked bar (or column), combined with a normal bar (using a secondary axis for the normal bar which later is hidden). The bar can have a conditional colour, i.e. determined by the value and coloured automatically (e.g., changing to red to flag severe underperfomance in appropriate cases). The target line is also a stacked bar with a negligible height.
The target line can be black, but also red or any other signal value. Moreover, other critical limit value lines can be added (even using different colours or shades). I personally like adding a value label to support easier reading, especially when more bars are used.
I wonder, however, whether the name "bullet graph" is the right label. I recall Stephen rejected "Performance Bar". But would "Progress Bar" not be a more descriptive name for this wonderful invention?