TC Energy's Fair Value Estimated at CA$92.49, Current Price CA$76.31
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 25 2025
0mins
Source: Yahoo Finance
- Valuation Analysis: Using a two-stage free cash flow model, TC Energy's fair value is estimated at CA$92.49, while the current share price of CA$76.31 suggests the stock is trading close to its fair value, indicating a conservative market expectation for its future cash flows.
- Future Cash Flow Forecast: Projected free cash flows are expected to grow annually, starting at CA$2.18 billion in 2026 and reaching CA$4.69 billion by 2035, reflecting the company's potential profitability in the future, although growth rates are anticipated to slow.
- Terminal Value Calculation: A conservative growth rate of 2.8% is used to calculate a terminal value of CA$128 billion, with a present value of CA$68 billion, demonstrating the stability of the company's long-term value despite market volatility risks.
- Investor Attention: Although the current stock price is 17% below fair value, analysts forecast annual earnings growth over the next three years, indicating potential attractiveness and investment opportunities for the company in the market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TRP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TRP
Wall Street analysts forecast TRP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TRP is 60.39 USD with a low forecast of 53.31 USD and a high forecast of 78.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 59.240
Low
53.31
Averages
60.39
High
78.00
Current: 59.240
Low
53.31
Averages
60.39
High
78.00
About TRP
TC Energy Corporation is an energy problem-solver working to move, generate and store energy and deliver it to homes and businesses in North America. The Company operates in two core businesses, including Natural Gas Pipelines and Power and Energy Solutions. Its natural gas pipeline network transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals and other businesses across Canada, the U.S. and Mexico. The Power and Energy Solutions business consists of power generation, non-regulated natural gas storage assets, as well as lower-carbon solutions. Its Power and Energy Solutions business includes approximately 4,650 megawatts (MW) of generation powered by nuclear, natural gas, wind and solar. Its natural gas pipelines business is split into three operating segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines and Mexico Natural Gas Pipelines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TC Energy Declines to Redeem Preferred Shares, Offers Conversion Options to Shareholders
- Redemption Decision: TC Energy announced it will not redeem its Series 5 and Series 6 Preferred Shares on January 30, 2026, allowing shareholders to choose to retain or convert their shares, thereby providing flexible investment options.
- Dividend Options: Holders of Series 5 Shares can retain them for a fixed annual dividend of 4.501%, or convert to Series 6 Shares for a floating quarterly dividend of 3.732%, enhancing investment flexibility and potential returns.
- Conversion Rights and Deadline: Shareholders must notify their brokers by January 16, 2026, to exercise their conversion rights; those who do not will automatically retain their shares, ensuring investors are informed and empowered in their decisions.
- Future Conversion Opportunities: Shareholders will have the chance to convert their shares again on January 30, 2031, and every five years thereafter, reflecting the company's long-term commitment and support for its preferred shareholders.
Continue Reading
TC Energy Declines to Redeem Preferred Shares, Offers Holders Options
- Preferred Share Redemption Decision: TC Energy announced it will not exercise its right to redeem its Series 5 and Series 6 preferred shares on January 30, 2026, allowing shareholders to continue receiving fixed quarterly dividends, thus ensuring stable returns for investors.
- Shareholder Options: Holders of Series 5 preferred shares can choose to retain their shares for fixed dividends or convert them on a one-for-one basis into Series 6 shares to receive floating rate dividends, providing investors with flexible investment strategies.
- Market Reaction Expectations: This decision may influence investor perceptions of the company's dividend policy, particularly in the current interest rate environment where floating dividends could attract yield-seeking investors.
- Long-term Strategic Considerations: By opting not to redeem the preferred shares, TC Energy demonstrates prudent management of its capital structure, aiming to maintain financial flexibility and support future investment opportunities.
Continue Reading