Latest Ratios: P/E Ratio -30.2x · EV/EBITDA 24.0x · ROE -8.3%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.0B | $3.8B | $4.2B | $2.3B | $2.4B | $3.0B | $2.1B | $2.0B | $1.2B | $1.7B | $1.6B |
| Enterprise Value | $7.0B | $8.0B | $8.4B | $5.8B | $5.3B | $5.7B | $5.1B | $5.2B | $4.4B | $5.1B | $5.6B |
| P/E Ratio → | -30.24 | — | 23.58 | 3.57 | 15.20 | — | — | 11.55 | — | — | 13.41 |
| P/S Ratio | 2.39 | 1.56 | 1.47 | 0.68 | 0.82 | 1.11 | 0.99 | 0.86 | 0.53 | 0.74 | 0.66 |
| P/B Ratio | 3.93 | 2.56 | 2.27 | 1.38 | 1.22 | 1.16 | 0.61 | 0.50 | 0.29 | 0.39 | 0.34 |
| P/FCF | 24.46 | 15.99 | 15.18 | 3.98 | — | 5.89 | 10.33 | 4.85 | 2.26 | 7.23 | 4.34 |
| P/OCF | 8.90 | 5.82 | 5.26 | 1.57 | 2.77 | 3.01 | 2.97 | 2.39 | 1.44 | 2.74 | 2.13 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.31 | 2.96 | 1.72 | 1.78 | 2.08 | 2.42 | 2.20 | 1.94 | 2.21 | 2.35 |
| EV / EBITDA | 24.03 | 19.22 | 7.54 | 3.37 | 4.69 | 11.81 | 7.26 | 4.94 | 4.88 | 5.88 | 4.86 |
| EV / EBIT | — | — | 14.78 | 5.27 | 9.39 | — | — | 13.49 | 41.93 | 32.32 | 10.87 |
| EV / FCF | — | 33.86 | 30.47 | 10.00 | — | 11.07 | 25.13 | 12.33 | 8.34 | 21.55 | 15.45 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.6% | 32.6% | 63.1% | 65.1% | 54.9% | 54.7% | 53.9% | 53.7% | 51.1% | 56.0% | 59.8% |
| Operating Margin | -9.2% | -9.2% | 20.6% | 32.5% | 17.8% | -8.8% | -4.7% | 14.3% | 7.1% | 6.0% | 19.9% |
| Net Profit Margin | -5.7% | -5.7% | 8.0% | 20.7% | 1.7% | -19.7% | -13.7% | 3.5% | -8.8% | -6.9% | 7.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -8.3% | -8.3% | 13.1% | 38.1% | 2.2% | -17.8% | -7.7% | 2.0% | -4.6% | -3.5% | 3.7% |
| ROA | -1.5% | -1.5% | 2.5% | 7.2% | 0.5% | -5.7% | -3.0% | 0.9% | -2.0% | -1.5% | 1.5% |
| ROIC | -2.8% | -2.8% | 7.8% | 16.3% | 7.9% | -3.1% | -1.1% | 3.5% | 1.6% | 1.3% | 4.1% |
| ROCE | -3.2% | -3.2% | 8.4% | 14.7% | 7.0% | -3.0% | -1.2% | 4.0% | 1.9% | 1.5% | 4.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.06 | 3.06 | 2.47 | 2.29 | 2.02 | 1.39 | 1.07 | 0.87 | 0.79 | 0.85 | 0.94 |
| Debt / EBITDA | 10.83 | 10.83 | 4.09 | 2.23 | 3.55 | 7.50 | 5.28 | 3.39 | 3.65 | 4.27 | 3.76 |
| Net Debt / Equity | — | 2.87 | 2.29 | 2.08 | 1.44 | 1.02 | 0.87 | 0.77 | 0.77 | 0.77 | 0.87 |
| Net Debt / EBITDA | 10.15 | 10.15 | 3.78 | 2.03 | 2.54 | 5.53 | 4.27 | 3.00 | 3.55 | 3.90 | 3.49 |
| Debt / FCF | — | 17.88 | 15.30 | 6.02 | — | 5.19 | 14.79 | 7.48 | 6.08 | 14.32 | 11.11 |
| Interest Coverage | -0.77 | -0.77 | 2.28 | 5.15 | 2.67 | -0.78 | -0.66 | 3.04 | 0.46 | 0.90 | 2.14 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.73 | 0.73 | 0.69 | 0.91 | 1.29 | 1.14 | 2.03 | 1.20 | 1.50 | 1.06 | 1.28 |
| Quick Ratio | 0.67 | 0.67 | 0.64 | 0.82 | 1.23 | 1.05 | 1.78 | 0.98 | 1.23 | 0.93 | 1.10 |
| Cash Ratio | 0.15 | 0.15 | 0.13 | 0.20 | 0.39 | 0.49 | 0.75 | 0.37 | 0.10 | 0.20 | 0.25 |
| Asset Turnover | — | 0.28 | 0.30 | 0.39 | 0.28 | 0.29 | 0.22 | 0.25 | 0.24 | 0.22 | 0.22 |
| Inventory Turnover | 14.60 | 14.60 | 7.84 | 7.46 | 8.54 | 7.38 | 4.07 | 4.33 | 4.55 | 4.64 | 4.52 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 2.0% | 1.7% | 2.5% | 2.2% | 1.6% | 2.3% | 2.2% | 3.9% | 2.7% | 4.4% |
| Payout Ratio | — | — | 31.0% | 8.3% | 108.0% | — | — | 54.9% | — | — | 40.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 4.2% | 28.0% | 6.6% | — | — | 8.7% | — | — | 7.5% |
| FCF Yield | 4.1% | 6.3% | 6.6% | 25.1% | — | 17.0% | 9.7% | 20.6% | 44.2% | 13.8% | 23.0% |
| Buyback Yield | 0.4% | 0.6% | 3.4% | 3.8% | 2.1% | 0.1% | 2.7% | 3.4% | 1.9% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.7% | 2.6% | 5.1% | 6.3% | 4.4% | 1.7% | 5.0% | 5.6% | 5.8% | 2.7% | 4.4% |
| Shares Outstanding | — | $297M | $296M | $276M | $271M | $271M | $275M | $283M | $287M | $288M | $288M |
Merchant price and carbon volatility
According to current market data, TransAlta trades at a forward P/E of 44.95, which appears to reflect a significant transition discount as investors struggle to reconcile the company's legacy thermal baggage with its evolving renewable portfolio in the volatile Alberta merchant power market.
The elevated forward P/E suggests that the market is pricing in substantial earnings uncertainty rather than growth, as the company pivots away from coal. Investors should monitor whether the valuation remains anchored to these transition risks or if the unique optionality of the hydro fleet begins to command a premium.
As reported in recent financial statements, TransAlta maintains a debt-to-capital ratio of 0.75, a level that appears to constrain the company's financial flexibility and increases its vulnerability to credit market volatility during this capital-intensive transition phase away from legacy coal-fired generation assets.
The high debt load, coupled with inconsistent interest coverage ratios, suggests that the company's balance sheet is currently stretched. This leverage profile warrants further investigation into the firm's ability to fund future growth initiatives without further diluting equity or incurring prohibitive refinancing costs.
Based on the provided financial data, the dividend payout ratio reached 146.2% in 2026Q1, indicating that current distributions are not supported by recurring operational earnings and are instead tethered to the volatile cash flows inherent in the company's merchant-exposed power generation business model.
The inability to consistently cover the dividend from operating cash flow suggests that the current yield may be unsustainable without a significant improvement in merchant power margins. Investors should monitor the payout ratio closely, as it appears to be a secondary priority compared to the capital requirements of the energy transition.
As noted in industry research, the P/E ratio is frequently misapplied to TransAlta, as it obscures the impact of non-cash transition charges and derivative volatility that distort net income, making a cash-flow-based valuation metric a more reliable indicator of the company's true economic performance.
Applying a standard utility P/E multiple to TransAlta fails to account for the unique merchant risk and the non-recurring nature of coal-to-gas transition costs. Analysts should instead focus on EV/EBITDA or Free Cash Flow to the Firm to better capture the underlying operational health of the hydro and renewable assets.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying TAC stock.
TransAlta Corporation's current P/E ratio is -30.2x. The historical average is 21.0x.
TransAlta Corporation's current EV/EBITDA is 24.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.1x.
TransAlta Corporation's return on equity (ROE) is -8.3%. The historical average is 4.5%.
Based on historical data, TransAlta Corporation is trading at a P/E of -30.2x. Compare with industry peers and growth rates for a complete picture.
TransAlta Corporation's current dividend yield is 1.29%.
TransAlta Corporation has 32.6% gross margin and -9.2% operating margin.
TransAlta Corporation's Debt/EBITDA ratio is 10.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.