Latest Ratios: P/E Ratio -67.0x · EV/EBITDA 52.6x · ROE -17.7%. (2015–2025 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 2015 |
|---|---|---|---|---|---|---|---|
| Market Cap | $14.6B | $17.1B | $11.4B | $3.8B | — | — | — |
| Enterprise Value | $20.6B | $23.2B | $14.1B | $6.2B | — | — | — |
| P/E Ratio → | -66.97 | — | 11.40 | 6.17 | — | — | — |
| P/S Ratio | 5.55 | 6.52 | 5.49 | 1.55 | — | — | — |
| P/B Ratio | 13.41 | 15.67 | 8.20 | 1.49 | — | — | — |
| P/FCF | — | — | 8.83 | 7.32 | — | — | — |
| P/OCF | 23.68 | 27.85 | 46.83 | 4.37 | — | — | — |
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 2015 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.83 | 6.78 | 2.54 | — | — | — |
| EV / EBITDA | 52.63 | 59.17 | 24.53 | 10.49 | — | — | — |
| EV / EBIT | 1289.40 | 170.56 | 10.42 | 13.19 | — | — | — |
| EV / FCF | — | — | 10.90 | 12.01 | — | — | — |
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 2015 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 38.1% | 38.1% | 32.0% | 43.3% | 31.9% | 13.6% | 5.6% |
| Operating Margin | 0.6% | 0.6% | 8.0% | 3.4% | 4.3% | -25.1% | 3.8% |
| Net Profit Margin | -8.3% | -8.3% | 48.1% | 25.1% | -53.4% | -55.7% | -9.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2015 |
|---|---|---|---|---|---|---|---|
| ROE | -17.7% | -17.7% | 50.9% | 59.7% | -1027.1% | -134.9% | -7.9% |
| ROA | -2.6% | -2.6% | 15.1% | 6.9% | -12.4% | -9.8% | -2.7% |
| ROIC | 0.2% | 0.2% | 2.7% | 1.6% | 1.9% | -6.4% | 1.2% |
| ROCE | 0.2% | 0.2% | 2.7% | 1.3% | 1.7% | -6.8% | 1.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2015 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 6.24 | 6.24 | 2.17 | 1.11 | — | 6.47 | 1.12 |
| Debt / EBITDA | 17.40 | 17.40 | 5.24 | 4.77 | 5.83 | 23.13 | 6.71 |
| Net Debt / Equity | — | 5.55 | 1.93 | 0.96 | — | 6.09 | 1.09 |
| Net Debt / EBITDA | 15.48 | 15.48 | 4.67 | 4.09 | 4.50 | 21.79 | 6.51 |
| Debt / FCF | — | — | 2.08 | 4.69 | — | — | — |
| Interest Coverage | 0.45 | 0.45 | 5.67 | 1.40 | -2.70 | -2.94 | 0.65 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2015 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 2.29 | 3.20 | 0.88 | 0.80 | 1.32 |
| Quick Ratio | 1.02 | 1.02 | 1.62 | 2.43 | 0.78 | 0.68 | 1.08 |
| Cash Ratio | 0.72 | 0.72 | 0.72 | 0.82 | 0.20 | 0.08 | 0.39 |
| Asset Turnover | — | 0.24 | 0.34 | 0.34 | 0.22 | 0.18 | 0.28 |
| Inventory Turnover | 5.85 | 5.85 | 4.67 | 3.69 | 3.59 | 3.81 | 6.71 |
| 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 2015 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2015 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 8.8% | 16.2% | — | — | — |
| FCF Yield | — | — | 11.3% | 13.7% | — | — | — |
| Buyback Yield | 0.7% | 0.6% | 17.2% | 1.1% | — | — | — |
| Total Shareholder Yield | 0.7% | 0.6% | 17.2% | 1.1% | — | — | — |
| Shares Outstanding | — | $46M | $56M | $59M | $45M | $45M | $110M |
Includes 30+ ratios · 6 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying TLN stock.
Talen Energy Corporation's current P/E ratio is -67.0x. The historical average is 8.8x.
Talen Energy Corporation's current EV/EBITDA is 52.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 31.4x.
Talen Energy Corporation's return on equity (ROE) is -17.7%. The historical average is -10.0%.
Based on historical data, Talen Energy Corporation is trading at a P/E of -67.0x. Compare with industry peers and growth rates for a complete picture.
Talen Energy Corporation has 38.1% gross margin and 0.6% operating margin.
Talen Energy Corporation's Debt/EBITDA ratio is 17.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage spike from data center capex
Metrics are mathematically derived from official filings.
Premium Priced for AI Optionality
Talen trades at 16.2x forward earnings versus Vistra's 64.6x and Constellation's 36.5x, per peer data, yet its trailing P/E is negative due to volatile earnings, suggesting the market is pricing in future data center growth.
The forward P/E of 16.16 implies the market expects a dramatic earnings recovery from the current loss-making quarter, likely driven by contracted data center load. However, the EV/EBITDA of 55.2 is far above peers (VST 15.8, CEG 25.1), indicating that the market is capitalizing future EBITDA growth at a premium. Given the absence of a dividend, total return relies entirely on capital appreciation, making the stock sensitive to execution on the Susquehanna data center campus.
Earned ROE Swings Wildly
Talen's quarterly ROE ranged from -28.3% in 2025Q4 to 15.2% in 2025Q3, per reported figures, far exceeding any authorized ROE band, indicating that merchant power revenues, not regulation, drive returns.
As an IPP, Talen does not have a traditional authorized ROE; instead, returns are determined by power prices and hedging. The extreme volatility in ROE—from -28.3% to 15.2% within two quarters—reflects mark-to-market swings and one-off items, not a stable regulatory construct. Investors should focus on the average ROE over a full commodity cycle rather than any single quarter, as the current negative ROE in 2026Q2 may not be indicative of long-term earning power.
Fuel Costs Outpacing Revenue
Operating margin swung from 29.5% in 2025Q3 to -33.9% in 2025Q4, per financial statements, indicating that fuel and purchased power costs are not being fully recovered in the current pricing environment.
The negative operating margin in 2025Q4 and 2026Q2 suggests that Talen's hedges or power purchase agreements did not cover rising fuel costs, or that mark-to-market losses on derivatives impacted margins. While the 2026Q1 margin of 29.3% shows recovery, the volatility indicates that cost recovery is not automatic. For an IPP, fuel costs are a direct expense, and the ability to pass them through depends on forward power prices, which have been volatile.
Leverage Spikes to Unsustainable Levels
Debt-to-capital rose from 0.49 in 2024Q1 to 0.85 by 2026Q2, per reported data, while interest coverage fell to 0.40 in 2026Q2, indicating that the data center capex is being financed almost entirely with debt.
The debt-to-capital ratio of 0.85 is extremely high for any utility, and interest coverage of 0.40 in 2026Q2 means operating income is insufficient to cover interest expense. This is a direct result of the $9.6B debt load taken on to fund the Susquehanna data center expansion. While the FFO/Debt ratio of 0.31 in 2026Q2 is low, it improved from negative in 2025Q4, suggesting some cash flow recovery. However, the balance sheet is strained, and any further deterioration could trigger credit rating downgrades.
No Dividend, All Cash to Growth
Talen paid no dividends in any of the last ten quarters, per reported data, with all cash retained for the data center build-out, indicating that shareholders rely solely on capital appreciation.
The absence of a dividend is unusual for a utility but typical for a growth-oriented IPP. The payout ratio is not applicable, and the dividend yield is zero. This means that the stock's total return is entirely dependent on the success of the data center investments. If the projects are delayed or underperform, there is no dividend cushion to support the stock price. Investors should monitor the progress of the Susquehanna campus and the associated contracted capacity payments.
P/E Misleading for Merchant Utility
Talen's trailing P/E of -71.65 is meaningless due to volatile earnings, per reported figures, and comparing it to regulated utilities' P/E obscures the merchant power model's cyclicality.
The most commonly misapplied ratio for Talen is the P/E ratio, because earnings are heavily influenced by non-cash mark-to-market gains and losses, as seen in the swing from 109.9% net margin in 2024Q2 to -47.1% in 2025Q4. Instead, investors should use EV/EBITDA or P/CFO to value the company, as these metrics better capture the underlying cash generation from power sales. Additionally, the high debt-to-capital ratio should be evaluated in the context of contracted revenues from data centers, which provide more predictable cash flows than merchant power.