TransAlta Corporation (TAC) Financial Ratios
29 years of historical data (1997–2025) · Utilities · Independent Power Producers
EV/EBITDA
↑
24.24
↑+160% vs avg
5yr avg: 9.33
30Y Low3.4·High19.2
P/FCF
↑
24.82
↑+142% vs avg
5yr avg: 10.26
30Y Low2.3·High126.1
P/B Ratio
↑
3.98
↑+132% vs avg
5yr avg: 1.72
30Y Low0.2·High2.6
ROE
↑
-8.3%
↑-254% vs avg
5yr avg: 5.4%
30Y Low-18%·High38%
Debt/EBITDA
↑
10.83
↑+92% vs avg
5yr avg: 5.64
30Y Low2.0·High10.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TAC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
TransAlta Corporation currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis. On a free-cash-flow basis, the stock trades at 24.8x P/FCF, 142% above the 5-year average of 10.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.1B | $3.8B | $4.2B | $2.3B | $2.4B | $3.0B | $2.1B | $2.0B | $1.2B | $1.7B | $1.6B |
| Enterprise Value | $7.1B | $8.0B | $8.4B | $5.8B | $5.3B | $5.7B | $5.1B | $5.2B | $4.4B | $5.1B | $5.6B |
| P/E Ratio → | -30.68 | — | 23.58 | 3.57 | 15.20 | — | — | 11.55 | — | — | 13.41 |
| P/S Ratio | 2.42 | 1.56 | 1.47 | 0.68 | 0.82 | 1.11 | 0.99 | 0.86 | 0.53 | 0.74 | 0.66 |
| P/B Ratio | 3.98 | 2.56 | 2.27 | 1.38 | 1.22 | 1.16 | 0.61 | 0.50 | 0.29 | 0.39 | 0.34 |
| P/FCF | 24.82 | 15.99 | 15.18 | 3.98 | — | 5.89 | 10.33 | 4.85 | 2.26 | 7.23 | 4.34 |
| P/OCF | 9.03 | 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
TAC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
TransAlta Corporation's enterprise value stands at 24.2x EBITDA, 160% above its 5-year average of 9.3x. The Utilities sector median is 11.9x, placing the stock at a 104% premium on an enterprise-value basis.
| 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 | 24.24 | 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 |
TAC Profitability
Margins and return-on-capital ratios measuring operating efficiency
TransAlta Corporation earns an operating margin of -9.2%, below the Utilities sector average of 18.5%. Operating margins have compressed from 32.5% to -9.2% over the past 3 years, signaling potential cost pressures or competitive headwinds. A negative ROE of -8.3% indicates the company is currently destroying shareholder equity.
Margins
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% |
Return on Capital
| 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% |
TAC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
TransAlta Corporation carries a Debt/EBITDA ratio of 10.8x, which is highly leveraged (109% above the sector average of 5.2x). Net debt stands at $4.2B ($4.5B total debt minus $283M cash).
| 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 |
TAC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.73x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.91x to 0.73x over the past 3 years.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
TAC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
TransAlta Corporation returns 1.7% to shareholders annually — split between a 1.3% dividend yield and 0.4% buyback yield.
Dividends
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% |
Total Shareholder Return Metrics
| 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 | 4.0% | 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 |
Peer Comparison
Compare TAC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TACYou | $4B | -30.7 | 24.2 | 24.8 | 32.6% | -9.2% | -8.3% | -2.8% | 10.8 |
 NRG | $29B | 34.6 | 10.9 | 38.3 | 21.8% | 6.0% | 41.5% | 10.6% | 4.4 |
 VST | $56B | 75.7 | 17.7 | 437.2 | 17.5% | 7.9% | 17.7% | 4.3% | 4.8 |
 CWEN | $8B | 26.1 | 16.0 | 20.6 | 15.2% | 12.3% | 2.9% | 0.9% | 9.6 |
 BEP | $11B | -530.3 | 13.3 | — | 16.8% | 13.4% | -0.1% | 0.9% | 10.7 |
 AES | $10B | 11.6 | 11.3 | — | 18.1% | 16.1% | 9.7% | 3.9% | 8.8 |
 NEE | $180B | 26.2 | 17.7 | — | 62.8% | 30.1% | 10.7% | 4.1% | 6.2 |
 CLNE | $394M | -1.8 | 70.8 | 6.6 | 4.2% | -22.0% | -34.6% | -9.4% | 20.9 |
 RUN | $3B | 8.0 | 24.3 | — | 26.8% | -4.3% | 9.8% | -0.5% | 21.4 |
 GE | $371B | 43.5 | 38.0 | 51.1 | 36.8% | 19.1% | 45.3% | 24.7% | 2.1 |
 ENPH | $7B | 40.6 | 31.3 | 72.0 | 46.6% | 11.2% | 17.9% | 6.8% | 5.1 |
| Utilities Median | — | 19.1 | 11.9 | 18.6 | 38.4% | 18.5% | 9.3% | 4.9% | 5.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 29 years · Updated daily
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TAC — Frequently Asked Questions
Quick answers to the most common questions about buying TAC stock.
What is TransAlta Corporation's P/E ratio?
TransAlta Corporation's current P/E ratio is -30.7x. The historical average is 21.0x.
What is TransAlta Corporation's EV/EBITDA?
TransAlta Corporation's current EV/EBITDA is 24.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.1x.
What is TransAlta Corporation's ROE?
TransAlta Corporation's return on equity (ROE) is -8.3%. The historical average is 4.5%.
Is TAC stock overvalued?
Based on historical data, TransAlta Corporation is trading at a P/E of -30.7x. Compare with industry peers and growth rates for a complete picture.
What is TransAlta Corporation's dividend yield?
TransAlta Corporation's current dividend yield is 1.27%.
What are TransAlta Corporation's profit margins?
TransAlta Corporation has 32.6% gross margin and -9.2% operating margin.
How much debt does TransAlta Corporation have?
TransAlta Corporation's Debt/EBITDA ratio is 10.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.