TransAlta (STU:TZ1) 5-Year Yield-on-Cost %: 1.99 (As of Jun. 24, 2026) — 28% Below Median


STU:TZ1 TransAlta Corp STU:TZ1
55 GF Score
Price €12.40
GF Value €6.22
Valuation Significantly Overvalued
! 6 Warning Signs
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What is TransAlta 5-Year Yield-on-Cost %?

TransAlta STU:TZ1 55 5-Year Yield-on-Cost % is 1.99 as of Jun. 24, 2026, which is 28% below its 10-year median of 2.78. GuruFocus rates STU:TZ1 with a GF Score™ of 55/100 and a GF Value™ of €6.22 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 239 Utilities - Independent Power Producers companies, TransAlta ranks worse than 69.04% on this metric.

TransAlta's yield on cost for the quarter that ended in Mar. 2026 was 1.99.


The historical rank and industry rank for TransAlta's 5-Year Yield-on-Cost % or its related term are showing as below:

STU:TZ1' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.53   Med: 2.78   Max: 11.66
Current: 1.99


During the past 13 years, TransAlta's highest Yield on Cost was 11.66. The lowest was 1.53. And the median was 2.78.


STU:TZ1's 5-Year Yield-on-Cost % is ranked worse than
69.04% of 239 companies
in the Utilities - Independent Power Producers industry
Industry Median: 3.79 vs STU:TZ1: 1.99

TransAlta  (STU:TZ1) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


TransAlta 5-Year Yield-on-Cost % Related Terms


STU:TZ1 vs CEG, VST, NRG: 5-Year Yield-on-Cost % Comparison

For the Utilities - Independent Power Producers subindustry, TransAlta's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where TransAlta's 5-Year Yield-on-Cost % falls into.


STU:TZ1
55GF Score
TransAlta Corp STU:TZ1
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
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TransAlta 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of TransAlta is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 1.99 mean?
TransAlta (STU:TZ1) has a 5-Year Yield-on-Cost % of 1.99 as of Jun. 24, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on TransAlta and its competitors. This is 28% below median its historical median of 2.78. Over the past decade, TransAlta's 5-Year Yield-on-Cost % has ranged from 1.53 to 11.66. According to the industry distribution chart, TransAlta ranks #165 out of 239 companies in the Utilities - Independent Power Producers industry, placing it in the top 69%.
Is TransAlta's 5-Year Yield-on-Cost % too high?
TransAlta's current 5-Year Yield-on-Cost % of 1.99 is 28% below median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 11.66. The Utilities - Independent Power Producers industry median 5-Year Yield-on-Cost % is 3.79. TransAlta's value of 1.99 is 47.5% below this industry median. Based on the distribution chart, TransAlta ranks #165 out of 239 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, TransAlta has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TransAlta's 5-Year Yield-on-Cost % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, TransAlta ranks #165 out of 239 companies for 5-Year Yield-on-Cost %. This places TransAlta in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.79. TransAlta's value of 1.99 is 47.5% below this benchmark. Historically, TransAlta's own 5-Year Yield-on-Cost % has ranged from 1.53 to 11.66 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 3.79, TransAlta has consistently been below 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 5-Year Yield-on-Cost % for an Utilities - Independent Power Producers company?
The median 5-Year Yield-on-Cost % among Utilities - Independent Power Producers companies is 3.79, based on 239 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransAlta's current 5-Year Yield-on-Cost % of 1.99 is 47.5% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on TransAlta and its competitors. For the Utilities - Independent Power Producers industry, the median 5-Year Yield-on-Cost % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransAlta's current 5-Year Yield-on-Cost % is 1.99, which is 28% below median its own 10-year median of 2.78. 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 (STU:TZ1) is currently considered Significantly Overvalued. The stock's GF Value™ is €6.22, compared to a current price of €12.40 — trading 99.4% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.99, which is 28% below median its 10-year median of 2.78 and 47.5% below the Utilities - Independent Power Producers industry median of 3.79. TransAlta's overall GF Score™ is 55/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For TransAlta (STU:TZ1), the current 5-Year Yield-on-Cost % is 1.99 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 (STU:TZ1) Overvalued in 2026?

Based on GuruFocus' analysis, TransAlta stock appears to be overvalued. The current stock price of €12.40 is trading 99.4% above its estimated GF Value™ of €6.22. GuruFocus considers TransAlta to be Significantly Overvalued.

Key valuation signals for STU:TZ1:

  • 5-Year Yield-on-Cost %: 1.99 (28% below median its 10-year median of 2.78)
  • GF Value™: €6.22 vs. price of €12.40 (99.4% above fair value)
  • GF Score™: 55/100 with 6 warning signs
  • Industry Position: 47.5% below the Utilities - Independent Power Producers median (#165 of 239)

No single metric tells the full story. See the STU:TZ1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


TransAlta Business Description

Address 1100 1st Street SE, TransAlta Place, Suite 1400, Calgary, AB, CAN, T2G 1B1
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.
55GF Score

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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€12.40
Price
€6.22
GF Value