TAC Valuation

TransAlta Corp

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12.130

-0.18(-1.462%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PS ratio of 2.15 is considered Overvalued compared with the five-year average of -25.29. The fair price of TransAlta Corp (TAC) is between 8.20 to 11.36 according to relative valuation methord. Compared to the current price of 12.13 USD , TransAlta Corp is Overvalued By 6.81%.

Relative Value

Fair Zone

8.20-11.36

Current Price：12.13

6.81%

Overvalued

55.46

Trailing

Forward

9.03

EV/EBITDA

TransAlta Corp. (TAC) has a current EV/EBITDA of 9.03. The 5-year average EV/EBITDA is 6.90. The thresholds are as follows: Strongly Undervalued below 4.71, Undervalued between 4.71 and 5.81, Fairly Valued between 8.00 and 5.81, Overvalued between 8.00 and 9.09, and Strongly Overvalued above 9.09. The current Forward EV/EBITDA of 9.03 falls within the Overvalued range.

20.07

EV/EBIT

TransAlta Corp. (TAC) has a current EV/EBIT of 20.07. The 5-year average EV/EBIT is 14.08. The thresholds are as follows: Strongly Undervalued below 4.10, Undervalued between 4.10 and 9.09, Fairly Valued between 19.07 and 9.09, Overvalued between 19.07 and 24.06, and Strongly Overvalued above 24.06. The current Forward EV/EBIT of 20.07 falls within the Overvalued range.

2.14

TransAlta Corp. (TAC) has a current PS of 2.14. The 5-year average PS is 1.44. The thresholds are as follows: Strongly Undervalued below 0.74, Undervalued between 0.74 and 1.09, Fairly Valued between 1.79 and 1.09, Overvalued between 1.79 and 2.14, and Strongly Overvalued above 2.14. The current Forward PS of 2.14 falls within the Strongly Overvalued range.

7.52

P/OCF

TransAlta Corp. (TAC) has a current P/OCF of 7.52. The 5-year average P/OCF is 4.09. The thresholds are as follows: Strongly Undervalued below 1.59, Undervalued between 1.59 and 2.84, Fairly Valued between 5.34 and 2.84, Overvalued between 5.34 and 6.59, and Strongly Overvalued above 6.59. The current Forward P/OCF of 7.52 falls within the Strongly Overvalued range.

10.26

P/FCF

TransAlta Corp. (TAC) has a current P/FCF of 10.26. The 5-year average P/FCF is 7.18. The thresholds are as follows: Strongly Undervalued below 1.77, Undervalued between 1.77 and 4.48, Fairly Valued between 9.89 and 4.48, Overvalued between 9.89 and 12.60, and Strongly Overvalued above 12.60. The current Forward P/FCF of 10.26 falls within the Overvalued range.

TransAlta Corp (TAC) has a current Price-to-Book (P/B) ratio of 7.94. Compared to its 3-year average P/B ratio of 6.36 , the current P/B ratio is approximately 24.87% higher. Relative to its 5-year average P/B ratio of 5.23, the current P/B ratio is about 51.73% higher. TransAlta Corp (TAC) has a Forward Free Cash Flow (FCF) yield of approximately 6.25%. Compared to its 3-year average FCF yield of 8.68%, the current FCF yield is approximately -27.98% lower. Relative to its 5-year average FCF yield of 10.19% , the current FCF yield is about -38.63% lower.

7.95

P/B

Median3y

6.36

Median5y

5.23

6.29

FCF Yield

Median3y

8.68

Median5y

10.19

Competitors Valuation Multiple

The average P/S ratio for TAC's competitors is 2.53, providing a benchmark for relative valuation. TransAlta Corp Corp (TAC) exhibits a P/S ratio of 2.14, which is -15.55% above the industry average. Given its robust revenue growth of 26.03%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Portland General Electric Co

Ormat Technologies Inc

Brookfield Renewable Corp

Algonquin Power & Utilities Corp

1.78

2.43%

4.47B

Performance Decomposition

Market capitalization of TAC increased by 37.84% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -8.97 to -30.43.

The secondary factor is the Revenue Growth, contributed 26.03%to the performance.

Overall, the performance of TAC in the past 1 year is driven by P/E Change. Which is more unsustainable.

26.03%

388.00M → 489.00M

Revenue Growth

-227.45%

17.01 → -21.68

Margin Expansion

239.26%

-8.97 → -30.43

P/E Change

37.84%