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TransAltaTSX:TA +1.64%70 EV-to-EBITDA is 13.72 as of Aug. 11, 2026, which is 67% above its 10-year median of 8.24. GuruFocus rates TSX:TA with a GF Score™ of 70/100 and a GF Value™ of C$11.52 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 362 Utilities - Independent Power Producers companies, TransAlta ranks worse than 57.46% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, TransAlta's enterprise value is C$10,444 Mil.
TransAlta's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was C$761 Mil. Therefore, TransAlta's EV-to-EBITDA for today is 13.72.
The historical rank and industry rank for TransAlta's EV-to-EBITDA or its related term are showing as below:
TSX:TA'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.12 Med: 8.24 Max: 18.08
Current: 13.73
During the past 13 years, the highest EV-to-EBITDA of TransAlta was 18.08. The lowest was 4.12. And the median was 8.24.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
TransAlta's share price for today is C$17.38.
TransAlta's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$-0.250.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for TransAlta's EV-to-EBITDA 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-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where TransAlta's EV-to-EBITDA falls into.
TransAlta's current Enterprise Value is C$10,444 Mil.
TransAlta's EBITDA 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$761 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-EBITDA of 13.72 as of Aug. 11, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on TransAlta. This is 67% above median its historical median of 8.24. Over the past decade, TransAlta's EV-to-EBITDA has ranged from 4.12 to 18.08. According to the industry distribution chart, TransAlta ranks #208 out of 362 companies in the Utilities - Independent Power Producers industry, placing it in the top 57.5%.
Is TransAlta's EV-to-EBITDA too high?
TransAlta's current EV-to-EBITDA of 13.72 is 67% above median its 10-year median of 8.24. Over the past 10 years, this metric has ranged from a low of 4.12 to a high of 18.08. The Utilities - Independent Power Producers industry median EV-to-EBITDA is 11.71. TransAlta's value of 13.72 is 17.2% above this industry median. Based on the distribution chart, TransAlta ranks #208 out of 362 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. 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-EBITDA compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #208 out of 362 companies for EV-to-EBITDA. This places TransAlta in the lower half of its industry. The industry median EV-to-EBITDA is 11.71. TransAlta's value of 13.72 is 17.2% above this benchmark. Historically, TransAlta's own EV-to-EBITDA has ranged from 4.12 to 18.08 over the past decade. While the company's 10-year median is 8.24 vs. the industry median of 11.71, 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-EBITDA for an Utilities - Independent Power Producers company?
The median EV-to-EBITDA among Utilities - Independent Power Producers companies is 11.71, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current EV-to-EBITDA of 13.72 is 17.2% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on TransAlta. For the Utilities - Independent Power Producers industry, the median EV-to-EBITDA is 11.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current EV-to-EBITDA is 13.72, which is 67% above median its own 10-year median of 8.24. 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$11.52, compared to a current price of C$17.38 — trading 50.9% above its estimated fair value. The current EV-to-EBITDA is 13.72, which is 67% above median its 10-year median of 8.24 and 17.2% above the Utilities - Independent Power Producers industry median of 11.71. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For TransAlta (TSX:TA), the current EV-to-EBITDA is 13.72 as of Aug. 11, 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$17.38 is trading 50.9% above its estimated GF Value™ of C$11.52.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for TSX:TA:
EV-to-EBITDA: 13.72 (67% above median its 10-year median of 8.24)
GF Value™: C$11.52 vs. price of C$17.38 (50.9% above fair value)
Industry Position: 17.2% above the Utilities - Independent Power Producers median (#208 of 362)
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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