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 2.34 is considered Overvalued compared with the five-year average of -15.18. The fair price of TransAlta Corp (TAC) is between 7.64 to 11.63 according to relative valuation methord. Compared to the current price of 12.72 USD , TransAlta Corp is Overvalued By 9.37%.
Relative Value
Fair Zone
7.64-11.63
Current Price：12.72
9.37%
Overvalued
97.87
PE
1Y
3Y
5Y
9.81
EV/EBITDA
TransAlta Corp. (TAC) has a current EV/EBITDA of 9.81. The 5-year average EV/EBITDA is 7.05. The thresholds are as follows: Strongly Undervalued below 4.35, Undervalued between 4.35 and 5.70, Fairly Valued between 8.40 and 5.70, Overvalued between 8.40 and 9.75, and Strongly Overvalued above 9.75. The current Forward EV/EBITDA of 9.81 falls within the Strongly Overvalued range.
20.95
EV/EBIT
TransAlta Corp. (TAC) has a current EV/EBIT of 20.95. The 5-year average EV/EBIT is 14.26. The thresholds are as follows: Strongly Undervalued below 3.81, Undervalued between 3.81 and 9.03, Fairly Valued between 19.48 and 9.03, Overvalued between 19.48 and 24.70, and Strongly Overvalued above 24.70. The current Forward EV/EBIT of 20.95 falls within the Overvalued range.
2.34
PS
TransAlta Corp. (TAC) has a current PS of 2.34. The 5-year average PS is 1.54. The thresholds are as follows: Strongly Undervalued below 0.62, Undervalued between 0.62 and 1.08, Fairly Valued between 2.00 and 1.08, Overvalued between 2.00 and 2.46, and Strongly Overvalued above 2.46. The current Forward PS of 2.34 falls within the Overvalued range.
8.21
P/OCF
TransAlta Corp. (TAC) has a current P/OCF of 8.21. The 5-year average P/OCF is 4.52. The thresholds are as follows: Strongly Undervalued below 0.93, Undervalued between 0.93 and 2.73, Fairly Valued between 6.32 and 2.73, Overvalued between 6.32 and 8.12, and Strongly Overvalued above 8.12. The current Forward P/OCF of 8.21 falls within the Strongly Overvalued range.
11.37
P/FCF
TransAlta Corp. (TAC) has a current P/FCF of 11.37. The 5-year average P/FCF is 7.66. The thresholds are as follows: Strongly Undervalued below 1.59, Undervalued between 1.59 and 4.62, Fairly Valued between 10.69 and 4.62, Overvalued between 10.69 and 13.73, and Strongly Overvalued above 13.73. The current Forward P/FCF of 11.37 falls within the Overvalued range.
TransAlta Corp (TAC) has a current Price-to-Book (P/B) ratio of 8.96. Compared to its 3-year average P/B ratio of 6.83 , the current P/B ratio is approximately 31.18% higher. Relative to its 5-year average P/B ratio of 5.86, the current P/B ratio is about 52.81% higher. TransAlta Corp (TAC) has a Forward Free Cash Flow (FCF) yield of approximately 6.81%. Compared to its 3-year average FCF yield of 8.98%, the current FCF yield is approximately -24.14% lower. Relative to its 5-year average FCF yield of 9.36% , the current FCF yield is about -27.18% lower.
8.96
P/B
Median3y
6.83
Median5y
5.86
6.81
FCF Yield
Median3y
8.98
Median5y
9.36
Competitors Valuation Multiple
The average P/S ratio for TAC's competitors is 2.36, providing a benchmark for relative valuation. TransAlta Corp Corp (TAC) exhibits a P/S ratio of 2.34, which is -0.9% above the industry average. Given its robust revenue growth of -9.04%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TAC increased by 10.80% 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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Frequently Asked Questions
Is TransAlta Corp (TAC) currently overvalued or undervalued?
TransAlta Corp (TAC) is now in the Overvalued zone, suggesting that its current forward PS ratio of 2.34 is considered Overvalued compared with the five-year average of -15.18. The fair price of TransAlta Corp (TAC) is between 7.64 to 11.63 according to relative valuation methord. Compared to the current price of 12.72 USD , TransAlta Corp is Overvalued By 9.37% .
What is TransAlta Corp (TAC) fair value?
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. The fair price of TransAlta Corp (TAC) is between 7.64 to 11.63 according to relative valuation methord.
How does TAC's valuation metrics compare to the industry average?
The average P/S ratio for TAC's competitors is 2.36, providing a benchmark for relative valuation. TransAlta Corp Corp (TAC) exhibits a P/S ratio of 2.34, which is -0.90% above the industry average. Given its robust revenue growth of -9.04%, this premium appears unsustainable.
What is the current P/B ratio for TransAlta Corp (TAC) as of Jan 07 2026?
As of Jan 07 2026, TransAlta Corp (TAC) has a P/B ratio of 8.96. This indicates that the market values TAC at 8.96 times its book value.
What is the current FCF Yield for TransAlta Corp (TAC) as of Jan 07 2026?
As of Jan 07 2026, TransAlta Corp (TAC) has a FCF Yield of 6.81%. This means that for every dollar of TransAlta Corp’s market capitalization, the company generates 6.81 cents in free cash flow.
What is the current Forward P/E ratio for TransAlta Corp (TAC) as of Jan 07 2026?
As of Jan 07 2026, TransAlta Corp (TAC) has a Forward P/E ratio of 97.87. This means the market is willing to pay $97.87 for every dollar of TransAlta Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for TransAlta Corp (TAC) as of Jan 07 2026?
As of Jan 07 2026, TransAlta Corp (TAC) has a Forward P/S ratio of 2.34. This means the market is valuing TAC at $2.34 for every dollar of expected revenue over the next 12 months.