TransAltaTAC 51 EV-to-OCF is 14.51 as of Jun. 24, 2026, which is 44% above its 10-year median of 10.11. GuruFocus rates TAC with a GF Score™ of 51/100 and a GF Value™ of $6.86 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 441 Utilities - Independent Power Producers companies, TransAlta ranks worse than 68.48% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, TransAlta's Enterprise Value is $8,027 Mil.
TransAlta's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was $553 Mil. Therefore, TransAlta's EV-to-OCF for today is 14.51.
The historical rank and industry rank for TransAlta's EV-to-OCF or its related term are showing as below:
TAC'
s EV-to-OCF Range Over the Past 10 Years
Min: 4.9 Med: 10.11 Max: 19.98
Current: 14.51
During the past 13 years, the highest EV-to-OCF of TransAlta was 19.98. The lowest was 4.90. And the median was 10.11.
EV-to-OCF 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-OCF 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 $13.69.
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 $-0.546.
* 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. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
TransAlta EV-to-OCF Related Terms
TransAlta EV-to-OCF Historical Data
* Premium members only.
The historical data trend for TransAlta's EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where TransAlta's EV-to-OCF falls into.
TransAlta's current Enterprise Value is $8,027 Mil.
TransAlta's Cash Flow from Operations 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 $553 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 (TAC) has a EV-to-OCF of 14.51 as of Jun. 24, 2026. This is 44% above median its historical median of 10.11. Over the past decade, TransAlta's EV-to-OCF has ranged from 4.90 to 19.98. According to the industry distribution chart, TransAlta ranks #302 out of 441 companies in the Utilities - Independent Power Producers industry, placing it in the top 68.5%.
Is TransAlta's EV-to-OCF too high?
TransAlta's current EV-to-OCF of 14.51 is 44% above median its 10-year median of 10.11. Over the past 10 years, this metric has ranged from a low of 4.90 to a high of 19.98. The Utilities - Independent Power Producers industry median EV-to-OCF is 9.80. TransAlta's value of 14.51 is 48.1% above this industry median. Based on the distribution chart, TransAlta ranks #302 out of 441 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, TransAlta has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's EV-to-OCF compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #302 out of 441 companies for EV-to-OCF. This places TransAlta in the lower half of its industry. The industry median EV-to-OCF is 9.80. TransAlta's value of 14.51 is 48.1% above this benchmark. Historically, TransAlta's own EV-to-OCF has ranged from 4.90 to 19.98 over the past decade. While the company's 10-year median is 10.11 vs. the industry median of 9.80, 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-OCF for an Utilities - Independent Power Producers company?
The median EV-to-OCF among Utilities - Independent Power Producers companies is 9.80, based on 441 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current EV-to-OCF of 14.51 is 48.1% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Utilities - Independent Power Producers industry, the median EV-to-OCF is 9.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current EV-to-OCF is 14.51, which is 44% above median its own 10-year median of 10.11. 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 (TAC) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.86, compared to a current price of $13.69 — trading 99.6% above its estimated fair value. The current EV-to-OCF is 14.51, which is 44% above median its 10-year median of 10.11 and 48.1% above the Utilities - Independent Power Producers industry median of 9.80. TransAlta's overall GF Score™ is 51/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For TransAlta (TAC), the current EV-to-OCF is 14.51 as of Jun. 24, 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 (TAC) Overvalued in 2026?
Based on GuruFocus' analysis, TransAlta stock appears to be overvalued.
The current stock price of $13.69 is trading 99.6% above its estimated GF Value™ of $6.86.
GuruFocus considers TransAlta to be Significantly Overvalued.
Key valuation signals for TAC:
EV-to-OCF: 14.51 (44% above median its 10-year median of 10.11)
GF Value™: $6.86 vs. price of $13.69 (99.6% above fair value)
Industry Position: 48.1% above the Utilities - Independent Power Producers median (#302 of 441)
No single metric tells the full story. See the TAC 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.
51GF Score
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