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 1.99 is considered Overvalued compared with the five-year average of -26.21. The fair price of TransAlta Corp (TAC) is between 9.06 to 12.48 according to relative valuation methord. Compared to the current price of 12.52 USD , TransAlta Corp is Overvalued By 0.34%.
Relative Value
Fair Zone
9.06-12.48
Current Price：12.52
0.34%
Overvalued
53.47
PE
1Y
3Y
5Y
Trailing
Forward
9.35
EV/EBITDA
TransAlta Corp. (TAC) has a current EV/EBITDA of 9.35. The 5-year average EV/EBITDA is 6.90. The thresholds are as follows: Strongly Undervalued below 4.72, Undervalued between 4.72 and 5.81, Fairly Valued between 7.98 and 5.81, Overvalued between 7.98 and 9.07, and Strongly Overvalued above 9.07. The current Forward EV/EBITDA of 9.35 falls within the Strongly Overvalued range.
17.35
EV/EBIT
TransAlta Corp. (TAC) has a current EV/EBIT of 17.35. The 5-year average EV/EBIT is 14.04. The thresholds are as follows: Strongly Undervalued below 4.12, Undervalued between 4.12 and 9.08, Fairly Valued between 19.00 and 9.08, Overvalued between 19.00 and 23.96, and Strongly Overvalued above 23.96. The current Forward EV/EBIT of 17.35 falls within the Historic Trend Line -Fairly Valued range.
1.99
PS
TransAlta Corp. (TAC) has a current PS of 1.99. The 5-year average PS is 1.43. The thresholds are as follows: Strongly Undervalued below 0.75, Undervalued between 0.75 and 1.09, Fairly Valued between 1.77 and 1.09, Overvalued between 1.77 and 2.10, and Strongly Overvalued above 2.10. The current Forward PS of 1.99 falls within the Overvalued range.
7.81
P/OCF
TransAlta Corp. (TAC) has a current P/OCF of 7.81. The 5-year average P/OCF is 4.05. The thresholds are as follows: Strongly Undervalued below 1.63, Undervalued between 1.63 and 2.84, Fairly Valued between 5.26 and 2.84, Overvalued between 5.26 and 6.47, and Strongly Overvalued above 6.47. The current Forward P/OCF of 7.81 falls within the Strongly Overvalued range.
10.47
P/FCF
TransAlta Corp. (TAC) has a current P/FCF of 10.47. The 5-year average P/FCF is 7.14. The thresholds are as follows: Strongly Undervalued below 1.75, Undervalued between 1.75 and 4.45, Fairly Valued between 9.84 and 4.45, Overvalued between 9.84 and 12.53, and Strongly Overvalued above 12.53. The current Forward P/FCF of 10.47 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 6.30 , the current P/B ratio is approximately 25.97% higher. Relative to its 5-year average P/B ratio of 5.15, the current P/B ratio is about 54.07% higher. TransAlta Corp (TAC) has a Forward Free Cash Flow (FCF) yield of approximately 6.28%. Compared to its 3-year average FCF yield of 8.81%, the current FCF yield is approximately -28.71% lower. Relative to its 5-year average FCF yield of 10.31% , the current FCF yield is about -39.08% lower.
7.94
P/B
Median3y
6.30
Median5y
5.15
6.28
FCF Yield
Median3y
8.81
Median5y
10.31
Competitors Valuation Multiple
The average P/S ratio for TAC's competitors is 2.47, providing a benchmark for relative valuation. TransAlta Corp Corp (TAC) exhibits a P/S ratio of 1.99, which is -19.46% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TAC increased by 42.27% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -8.85 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.
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FAQ
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