TransAltaTSX:TA -2.60%56 EV-to-FCF is 22.53 as of Jul. 02, 2026, which is 14% above its 10-year median of 19.68. GuruFocus rates TSX:TA with a GF Score™ of 56/100 and a GF Value™ of C$9.77 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 236 Utilities - Independent Power Producers companies, TransAlta ranks worse than 60.17% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, TransAlta's Enterprise Value is C$11,400 Mil.
TransAlta's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was C$506 Mil. Therefore, TransAlta's EV-to-FCF for today is 22.53.
The historical rank and industry rank for TransAlta's EV-to-FCF or its related term are showing as below:
TSX:TA'
s EV-to-FCF Range Over the Past 10 Years
Min: -122.32 Med: 19.68 Max: 64.51
Current: 22.53
During the past 13 years, the highest EV-to-FCF of TransAlta was 64.51. The lowest was -122.32. And the median was 19.68.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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$19.11.
TransAlta's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$-0.750.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
TransAlta EV-to-FCF Related Terms
TransAlta EV-to-FCF Historical Data
* Premium members only.
The historical data trend for TransAlta's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where TransAlta's EV-to-FCF falls into.
TransAlta's current Enterprise Value is C$11,400 Mil.
TransAlta's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$506 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-FCF of 22.53 as of Jul. 02, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on TransAlta and its competitors. This is 14% above median its historical median of 19.68. According to the industry distribution chart, TransAlta ranks #142 out of 236 companies in the Utilities - Independent Power Producers industry, placing it in the top 60.2%.
Is TransAlta's EV-to-FCF too high?
TransAlta's current EV-to-FCF of 22.53 is 14% above median its 10-year median of 19.68. The Utilities - Independent Power Producers industry median EV-to-FCF is 15.84. TransAlta's value of 22.53 is 42.3% above this industry median. Based on the distribution chart, TransAlta ranks #142 out of 236 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, TransAlta has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's EV-to-FCF compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #142 out of 236 companies for EV-to-FCF. This places TransAlta in the lower half of its industry. The industry median EV-to-FCF is 15.84. TransAlta's value of 22.53 is 42.3% above this benchmark. While the company's 10-year median is 19.68 vs. the industry median of 15.84, 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-FCF for an Utilities - Independent Power Producers company?
The median EV-to-FCF among Utilities - Independent Power Producers companies is 15.84, based on 236 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current EV-to-FCF of 22.53 is 42.3% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median EV-to-FCF is 15.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current EV-to-FCF is 22.53, which is 14% above median its own 10-year median of 19.68. 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$9.77, compared to a current price of C$19.11 — trading 95.6% above its estimated fair value. The current EV-to-FCF is 22.53, which is 14% above median its 10-year median of 19.68 and 42.3% above the Utilities - Independent Power Producers industry median of 15.84. TransAlta's overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For TransAlta (TSX:TA), the current EV-to-FCF is 22.53 as of Jul. 02, 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$19.11 is trading 95.6% above its estimated GF Value™ of C$9.77.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for TSX:TA:
EV-to-FCF: 22.53 (14% above median its 10-year median of 19.68)
GF Value™: C$9.77 vs. price of C$19.11 (95.6% above fair value)
Industry Position: 42.3% above the Utilities - Independent Power Producers median (#142 of 236)
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.
56GF Score
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