TC Energy Corporation (TRP) 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

-151.8%

-$32.98

vs $63.68 price

Levered DCF

-$32.75

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	23.08×	15.1×	17.72×	76.83×	28.65×	9.98×	14.76×	10.82×
P/B	2.88×	2.52×	1.64×	1.44×	1.57×	1.42×	1.91×	1.37×
P/S	5.17×	5.04×	3.66×	3.97×	3.89×	3.42×	4.43×	2.93×
EV / EBITDA	12×	11.46×	12.54×	20.41×	15.61×	9.75×	11.39×	11.14×
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×	2.29×	2.28×	2.67×	2.82×	2.64×	3.36×	2.72×
Dividend yield	4.6%	5.8%	5.9%	6.7%	6.6%	7.1%	3.3%	4.3%
Payout ratio	103.0%	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%	2.7%	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%	-1.8%	-0.7%	1.9%	-2.4%	-1.9%	-8.4%
Earnings yield	4.5%	6.8%	6.0%	1.5%	3.7%	10.4%	7.1%	9.2%
Enterprise value	$139.2B	$128.5B	$108.5B	$107B	$104.6B	$92.9B	$107.7B	$89.9B
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