Talen Energy Corporation (TLN) 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

-108.5%

-$28.33

vs $332.18 price

Levered DCF

-$121.25

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.93

Distress zone

Rating

D+

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
P/E	-78.25×	10.96×	6.17×	-1.62×	-2.14×
P/B	15.67×	7.88×	1.54×	-3.65×	2.85×
P/S	6.52×	5.27×	1.55×	0.87×	1.18×
EV / EBITDA	45.31×	7.69×	6.34×	-15.37×	-16.19×
Gross margin	38.1%	32.0%	43.3%	31.9%	13.6%
Operating margin	0.6%	8.0%	3.4%	4.3%	-25.1%
Net margin	-8.3%	48.1%	25.1%	-53.4%	-55.7%
Current ratio	1.28×	2.29×	3.2×	0.88×	0.8×
Debt / equity	6.24×	2.17×	1.15×	-7.6×	6.47×
Interest coverage	0.05×	0.69×	0.25×	0.29×	-1.37×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021
Return on equity	-20.0%	72.0%	24.9%	225.0%	-134.9%
Return on invested capital	0.2%	2.7%	0.9%	1.3%	-4.5%
Return on assets	-2.0%	16.3%	8.6%	-12.0%	-9.8%
Free cash flow yield	2.4%	0.5%	13.7%	-6.0%	-24.8%
Earnings yield	-1.3%	9.1%	16.2%	-61.6%	-47.3%
Enterprise value	$23.2B	$13.6B	$6.2B	$5.5B	$6.6B
Net debt / EBITDA	11.85×	1.51×	2.48×	-9.48×	-11.03×
Cash conversion cycle (days)	27	31	29	62	53