TAC Relative Valuation
TAC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TAC is overvalued; if below, it's undervalued.
Historical Valuation
TransAlta Corp (TAC) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of -17.33. The fair price of TransAlta Corp (TAC) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：14.00
Fair
125.74
PE
1Y
3Y
5Y
Trailing
Forward
9.47
EV/EBITDA
TransAlta Corp. (TAC) has a current EV/EBITDA of 9.47. The 5-year average EV/EBITDA is 7.00. The thresholds are as follows: Strongly Undervalued below 4.46, Undervalued between 4.46 and 5.73, Fairly Valued between 8.27 and 5.73, Overvalued between 8.27 and 9.54, and Strongly Overvalued above 9.54. The current Forward EV/EBITDA of 9.47 falls within the Overvalued range.
21.45
EV/EBIT
TransAlta Corp. (TAC) has a current EV/EBIT of 21.45. The 5-year average EV/EBIT is 14.21. The thresholds are as follows: Strongly Undervalued below 3.86, Undervalued between 3.86 and 9.03, Fairly Valued between 19.38 and 9.03, Overvalued between 19.38 and 24.56, and Strongly Overvalued above 24.56. The current Forward EV/EBIT of 21.45 falls within the Overvalued range.
2.53
PS
TransAlta Corp. (TAC) has a current PS of 2.53. The 5-year average PS is 1.52. The thresholds are as follows: Strongly Undervalued below 0.63, Undervalued between 0.63 and 1.07, Fairly Valued between 1.97 and 1.07, Overvalued between 1.97 and 2.41, and Strongly Overvalued above 2.41. The current Forward PS of 2.53 falls within the Strongly Overvalued range.
8.88
P/OCF
TransAlta Corp. (TAC) has a current P/OCF of 8.88. The 5-year average P/OCF is 4.44. The thresholds are as follows: Strongly Undervalued below 0.99, Undervalued between 0.99 and 2.71, Fairly Valued between 6.17 and 2.71, Overvalued between 6.17 and 7.89, and Strongly Overvalued above 7.89. The current Forward P/OCF of 8.88 falls within the Strongly Overvalued range.
12.17
P/FCF
TransAlta Corp. (TAC) has a current P/FCF of 12.17. The 5-year average P/FCF is 7.56. The thresholds are as follows: Strongly Undervalued below 1.59, Undervalued between 1.59 and 4.58, Fairly Valued between 10.55 and 4.58, Overvalued between 10.55 and 13.54, and Strongly Overvalued above 13.54. The current Forward P/FCF of 12.17 falls within the Overvalued range.
TransAlta Corp (TAC) has a current Price-to-Book (P/B) ratio of 9.79. Compared to its 3-year average P/B ratio of 6.81 , the current P/B ratio is approximately 43.73% higher. Relative to its 5-year average P/B ratio of 5.74, the current P/B ratio is about 70.38% higher. TransAlta Corp (TAC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.74%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 9.49% , the current FCF yield is about -100.00% lower.
9.96
P/B
Median3y
6.81
Median5y
5.74
6.23
FCF Yield
Median3y
8.74
Median5y
9.49
Competitors Valuation Multiple
The average P/S ratio for TAC's competitors is , providing a benchmark for relative valuation. TransAlta Corp Corp (TAC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -9.04%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TAC increased by 0.78% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -4.32 to -11.66.
The secondary factor is the Revenue Growth, contributed -9.04%to the performance.
Overall, the performance of TAC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
Is TransAlta Corp (TAC) currently overvalued or undervalued?
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What is the current FCF Yield for TransAlta Corp (TAC) as of Dec 05 2025?
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