TransAltaTAC 51 Forward PE Ratio is 61.67 as of Jun. 24, 2026. 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 204 Utilities - Independent Power Producers companies, TransAlta ranks worse than 93.14% on this metric.
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
TransAlta Forward PE Ratio Related Terms
TransAlta Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for TransAlta's Forward PE Ratio 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.
TransAlta Forward PE Ratio Chart
TransAlta Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
29.94
49.51
93.46
112.36
41.84
14.95
21.14
50.32
41.82
TransAlta Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-09
2018-12
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
29.94
39.68
49.75
32.47
49.51
70.92
277.78
131.58
93.46
82.64
66.67
112.36
57.47
41.84
34.97
23.58
38.76
14.95
17.73
9.03
20.62
21.14
18.59
11.74
31.06
50.32
29.50
37.64
51.40
41.82
81.77
TAC vs CEG, VST, NRG: Forward PE Ratio Comparison
For the Utilities - Independent Power Producers subindustry, TransAlta's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where TransAlta's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
TransAlta (TAC) has a Forward PE Ratio of 61.67 as of Jun. 24, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on TransAlta and its competitors. According to the industry distribution chart, TransAlta ranks #190 out of 204 companies in the Utilities - Independent Power Producers industry, placing it in the top 93.1%.
Is TransAlta's Forward PE Ratio too high?
TransAlta's current Forward PE Ratio is 61.67. The Utilities - Independent Power Producers industry median Forward PE Ratio is 15.50. TransAlta's value of 61.67 is 298% above this industry median. Based on the distribution chart, TransAlta ranks #190 out of 204 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. 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 Forward PE Ratio compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #190 out of 204 companies for Forward PE Ratio. This places TransAlta in the lower half of its industry. The industry median Forward PE Ratio is 15.50. TransAlta's value of 61.67 is 298% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Utilities - Independent Power Producers company?
The median Forward PE Ratio among Utilities - Independent Power Producers companies is 15.50, based on 204 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current Forward PE Ratio of 61.67 is 298% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median Forward PE Ratio is 15.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current Forward PE Ratio is 61.67. 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 Forward PE Ratio is 61.67 and 298% above the Utilities - Independent Power Producers industry median of 15.50. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For TransAlta (TAC), the current Forward PE Ratio is 61.67 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:
Forward PE Ratio: 61.67
GF Value™: $6.86 vs. price of $13.69 (99.6% above fair value)
Industry Position: 298% above the Utilities - Independent Power Producers median (#190 of 204)
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
Get the complete analysis for TAC
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TAC has been successfully added to your 