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TransAltaTSX:TA -0.92%70 EV-to-EBIT is 38.90 as of Aug. 10, 2026, which is 131% above its 10-year median of 16.85. GuruFocus rates TSX:TA with a GF Score™ of 70/100 and a GF Value™ of C$11.27 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 343 Utilities - Independent Power Producers companies, TransAlta ranks worse than 80.17% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
TransAlta's Enterprise Value for the quarter that ended in Jun. 2026 was C$11,147 Mil.
TransAlta's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$268 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TransAlta EV-to-EBIT Related Terms
TransAlta EV-to-EBIT Historical Data
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The historical data trend for TransAlta's EV-to-EBIT can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Independent Power Producers subindustry, TransAlta's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TransAlta EV-to-EBIT vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where TransAlta's EV-to-EBIT falls into.
TransAlta's current Enterprise Value is C$10,425 Mil.
TransAlta's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$268 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TransAlta (TSX:TA) has a EV-to-EBIT of 38.90 as of Aug. 10, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on TransAlta and its competitors. This is 131% above median its historical median of 16.85. According to the industry distribution chart, TransAlta ranks #275 out of 343 companies in the Utilities - Independent Power Producers industry, placing it in the top 80.2%.
Is TransAlta's EV-to-EBIT too high?
TransAlta's current EV-to-EBIT of 38.90 is 131% above median its 10-year median of 16.85. The Utilities - Independent Power Producers industry median EV-to-EBIT is 17.72. TransAlta's value of 38.90 is 119.5% above this industry median. Based on the distribution chart, TransAlta ranks #275 out of 343 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, TransAlta has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's EV-to-EBIT compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #275 out of 343 companies for EV-to-EBIT. This places TransAlta in the lower half of its industry. The industry median EV-to-EBIT is 17.72. TransAlta's value of 38.90 is 119.5% above this benchmark. While the company's 10-year median is 16.85 vs. the industry median of 17.72, TransAlta has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Utilities - Independent Power Producers company?
The median EV-to-EBIT among Utilities - Independent Power Producers companies is 17.72, based on 343 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current EV-to-EBIT of 38.90 is 119.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median EV-to-EBIT is 17.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current EV-to-EBIT is 38.90, which is 131% above median its own 10-year median of 16.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransAlta stock overvalued right now?
Based on GuruFocus' analysis, TransAlta (TSX:TA) is currently considered Significantly Overvalued. The stock's GF Value™ is C$11.27, compared to a current price of C$17.32 — trading 53.7% above its estimated fair value. The current EV-to-EBIT is 38.90, which is 131% above median its 10-year median of 16.85 and 119.5% above the Utilities - Independent Power Producers industry median of 17.72. TransAlta's overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For TransAlta (TSX:TA), the current EV-to-EBIT is 38.90 as of Aug. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TransAlta (TSX:TA) Overvalued in 2026?
Based on GuruFocus' analysis, TransAlta stock appears to be overvalued.
The current stock price of C$17.32 is trading 53.7% above its estimated GF Value™ of C$11.27.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for TSX:TA:
EV-to-EBIT: 38.90 (131% above median its 10-year median of 16.85)
GF Value™: C$11.27 vs. price of C$17.32 (53.7% above fair value)
Industry Position: 119.5% above the Utilities - Independent Power Producers median (#275 of 343)
No single metric tells the full story. See the TSX:TA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TransAlta Corp is an independent power producer based in Alberta, Canada. The company operates a diverse electrical power generation assets in Canada, the United States, and Western Australia. The company has reportable segments namely, Hydro, Wind & Solar, Gas, Energy Transition segment and Corporate Segment. The company generates the majority of its revenue from the gas segment.
70GF Score
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