TransAlta Corporation (TAC) 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

-50.9%

$6.28

vs $12.80 price

Levered DCF

$6.55

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.39

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	-27.1×	33.91×	4.72×	20.59×	-8.95×	-10.52×	14.98×	-8.15×
P/B	3.68×	3.45×	1.98×	2.97×	2.41×	1.13×	0.89×	0.54×
P/S	2.14×	2.12×	0.91×	1.11×	1.4×	1.27×	1.12×	0.72×
EV / EBITDA	11.99×	9.31×	3.8×	5.3×	11.71×	8.22×	5.28×	5.89×
Gross margin	32.6%	63.1%	65.1%	54.9%	54.7%	53.9%	53.7%	51.1%
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×	1.5×
Debt / equity	3.21×	2.61×	2.48×	3.61×	2.28×	1.57×	1.19×	1.09×
Interest coverage	-0.77×	2.34×	5.14×	2.5×	-1.12×	-0.59×	2.67×	0.71×
Dividend yield	2.4%	2.0%	3.6%	2.9%	2.3%	3.2%	3.2%	5.3%
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%	7.9%	19.0%	-2.2%	13.4%	7.6%	15.9%	32.4%
Earnings yield	-2.7%	3.8%	22.9%	1.5%	-14.1%	-10.8%	3.1%	-12.3%
Enterprise value	$9.3B	$10.2B	$6.5B	$6.2B	$6.5B	$5.7B	$5.8B	$4.8B
Net debt / EBITDA	5.38×	3.84×	2.02×	2.47×	4.81×	4.35×	2.87×	3.9×
Cash conversion cycle (days)	8	-112	-124	-91	-64	-45	19	17