TC Energy Corporation (TRP.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

-126.9%

-CA$23.91

vs CA$89.05 price

Levered DCF

-CA$40.33

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.88

Distress zone

Rating

Overall 2 / 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	23.11×	15.12×	19.04×	84.34×	31.46×	10.92×	16.16×	12.44×
P/B	2.88×	2.52×	1.82×	1.58×	1.72×	1.55×	2.09×	1.5×
P/S	5.17×	5.05×	4.06×	4.36×	4.28×	3.74×	4.85×	3.21×
EV / EBITDA	12×	11.47×	13.16×	21.33×	16.37×	10.19×	11.98×	11.63×
Gross margin	50.0%	48.0%	50.3%	47.1%	49.9%	50.2%	49.1%	45.7%
Operating margin	44.2%	42.0%	44.4%	41.2%	44.1%	44.6%	43.7%	41.5%
Net margin	23.2%	34.1%	22.0%	6.1%	14.6%	35.5%	31.2%	27.1%
Current ratio	0.63×	0.55×	0.96×	0.43×	0.57×	0.43×	0.59×	0.4×
Debt / equity	2.23×	2.17×	2.15×	1.73×	1.6×	1.59×	1.64×	1.71×
Interest coverage	1.98×	1.92×	2.28×	2.28×	2.82×	3.09×	3.11×	0×
Dividend yield	4.6%	5.8%	5.3%	6.1%	6.0%	6.5%	3.0%	3.9%
Payout ratio	102.9%	86.2%	98.5%	440.9%	176.9%	68.2%	47.3%	46.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.9%	17.0%	9.9%	2.2%	5.9%	14.7%	13.5%	12.6%
Return on invested capital	4.8%	4.4%	3.8%	1.5%	5.7%	5.9%	5.3%	5.5%
Return on assets	3.0%	4.0%	2.3%	0.7%	1.9%	4.6%	4.2%	3.7%
Free cash flow yield	2.6%	1.9%	-1.6%	-0.7%	1.7%	-2.2%	-1.7%	-7.6%
Earnings yield	4.5%	6.8%	5.4%	1.4%	3.4%	9.5%	6.4%	8.4%
Enterprise value	CA$139.3B	CA$128.6B	CA$113.9B	CA$111.8B	CA$109.7B	CA$97.1B	CA$113.3B	CA$93.8B
Net debt / EBITDA	5.23×	5.27×	6.93×	11.08×	7.83×	5.08×	5.19×	6.17×
Cash conversion cycle (days)	-47	-68	-49	-70	-65	-73	-84	-65