TransAlta Corporation (TA.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-46.4%

CA$9.55

vs CA$17.81 price

Levered DCF

CA$4.20

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.38

Distress zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-27.13×	34.46×	4.73×	818.24×	-6.6×	-7.93×	51.56×	-6.5×
P/B	3.69×	3.52×	1.98×	2.96×	2.41×	1.13×	0.89×	0.54×
P/S	2.14×	2.16×	0.91×	1.1×	1.4×	1.27×	1.12×	0.71×
EV / EBITDA	11.92×	9.11×	4.07×	5.28×	5.89×	7.47×	7.23×	5.96×
Gross margin	32.6%	40.0%	49.0%	37.4%	35.9%	31.5%	33.5%	28.2%
Operating margin	-9.2%	20.6%	32.5%	17.8%	-8.8%	-4.7%	14.3%	7.1%
Net margin	-5.7%	8.0%	20.7%	1.7%	-19.7%	-13.7%	3.5%	-8.8%
Current ratio	0.73×	0.69×	0.91×	1.29×	1.14×	2.03×	1.2×	1.49×
Debt / equity	3.21×	2.61×	2.74×	3.97×	2.53×	1.74×	1.19×	1.09×
Interest coverage	-0.77×	2.16×	5.14×	2.22×	-1.04×	-0.46×	2.06×	0.78×
Dividend yield	2.4%	2.0%	3.6%	3.0%	2.3%	3.2%	3.2%	5.4%
Payout ratio	-91.3%	53.7%	15.7%	194.0%	-16.2%	-30.0%	103.7%	-43.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-9.9%	13.1%	45.2%	4.5%	-33.9%	-12.2%	2.8%	-6.6%
Return on invested capital	-2.9%	5.3%	13.2%	3.0%	-2.9%	-0.9%	3.4%	1.7%
Return on assets	-1.6%	2.4%	8.0%	0.5%	-5.8%	-2.9%	0.9%	-2.1%
Free cash flow yield	7.7%	7.7%	18.9%	-2.2%	13.4%	7.6%	15.9%	32.6%
Earnings yield	-2.7%	3.7%	22.9%	1.5%	-14.1%	-10.8%	3.1%	-12.3%
Enterprise value	CA$9.4B	CA$10.4B	CA$6.9B	CA$6.6B	CA$6.9B	CA$6B	CA$5.8B	CA$4.8B
Net debt / EBITDA	5.35×	3.71×	2.28×	2.64×	2.62×	4.18×	3.93×	3.96×
Cash conversion cycle (days)	8	-43	-64	-30	-30	3	30	50