TransAlta Corp (TSX:TA)

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Price: 15.02 CAD -1.31%

Market Cap: 4.5B CAD

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Section:

Relative Value

The Relative Value of one TA stock under the Base Case scenario is 20.87 CAD. Compared to the current market price of 15.02 CAD, TransAlta Corp is Undervalued by 28%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

What is Relative Valuation?

How is Relative Value calculated?

TA Relative Value

Base Case

Worst Case

Base Case

Best Case

Valuation Multiples

1.3

P/S

vs History	25
vs Industry	66

Median 5Y

1.1

Industry

1.7

Forward

1.3

More Details

17.7

P/E

vs History	23
vs Industry	50

Median 5Y

11.5

Industry

15.2

Forward

5.1

More Details

4.4

P/OCF

vs History	23
vs Industry	68

Median 5Y

3.7

Industry

More Details

350.3

P/FCFE

vs History	0
vs Industry	2

Median 5Y

11.2

Industry

13.8

More Details

P/B

vs History	4
vs Industry	27

Median 5Y

2.2

Industry

1.4

More Details

2.1

EV/S

vs History	33
vs Industry	60

Median 5Y

Industry

2.8

Forward

2.2

More Details

2.7

EV/GP

vs History	23
vs Industry	81

Median 5Y

2.4

Industry

7.5

More Details

4.9

EV/EBITDA

vs History	46
vs Industry	75

Median 5Y

4.7

Industry

10.5

Forward

4.3

More Details

9.1

EV/EBIT

vs History	52
vs Industry	65

Median 5Y

9.1

Industry

14.9

Forward

5.9

More Details

7.3

EV/OCF

vs History	20
vs Industry	66

Median 5Y

6.2

Industry

11.1

More Details

Negative

EV/FCFF

vs History
vs Industry

Median 5Y

Industry

16.4

More Details

EV/IC

vs History	0
vs Industry	57

Median 5Y

0.8

Industry

0.9

More Details

Multiples Across Competitors

All Multiples

P/S

P/E

EV/EBITDA

EV/EBIT

Forward Multiples

			Market Cap	P/S	P/E	EV/EBITDA	EV/EBIT
CA		TransAlta Corp TSX:TA	4.5B CAD	1.3	17.7	4.9	9.1
DE		Uniper SE XETRA:UN01	562.9B EUR	2.1	-29.7	-142.5	-87.5
SA		ACWA Power Co SAU:2082	284.5B SAR	46.1	149.4	114.5	139.2
US		Vistra Corp NYSE:VST	55.2B USD	3.4	29.8	11.6	19.3
IN		NTPC Ltd NSE:NTPC	3.5T INR	1.9	16.1	10.5	15.6
CN		CGN Power Co Ltd SZSE:003816	204.5B CNY	2.5	18.8	15.3	15.3
CN		China National Nuclear Power Co Ltd SSE:601985	186.4B CNY	2.4	17.9	16.5	16.5
TH	G	Gulf Energy Development PCL SET:GULF	750.9B THB	6.2	39.5	40.2	49.6
IN		Adani Power Ltd NSE:ADANIPOWER	1.8T INR	3.2	14	9.5	11.8
CN		SDIC Power Holdings Co Ltd SSE:600886	114B CNY	1.9	16.2	13.9	13.9
IN		JSW Energy Ltd NSE:JSWENERGY	1.2T INR	10.5	61.5	26.3	37.4

				Revenue Growth
CA		TransAlta Corp TSX:TA	Average P/S: 7.4 1.3	-13%
DE		Uniper SE XETRA:UN01	2.1	-1%
SA		ACWA Power Co SAU:2082	46.1	63%
US		Vistra Corp NYSE:VST	3.4	36%
IN		NTPC Ltd NSE:NTPC	1.9	24%
CN		CGN Power Co Ltd SZSE:003816	2.5	20%
CN		China National Nuclear Power Co Ltd SSE:601985	2.4	24%
TH	G	Gulf Energy Development PCL SET:GULF	6.2	30%
IN		Adani Power Ltd NSE:ADANIPOWER	3.2	N/A
CN		SDIC Power Holdings Co Ltd SSE:600886	1.9	19%
IN		JSW Energy Ltd NSE:JSWENERGY	10.5	72%

				Earnings Growth
CA		TransAlta Corp TSX:TA	Average P/E: 38.1 17.7	3 004%
DE		Uniper SE XETRA:UN01	Negative Multiple: -29.7	N/A
SA		ACWA Power Co SAU:2082	149.4	48%
US		Vistra Corp NYSE:VST	29.8	113%
IN		NTPC Ltd NSE:NTPC	16.1	28%
CN		CGN Power Co Ltd SZSE:003816	18.8	27%
CN		China National Nuclear Power Co Ltd SSE:601985	17.9	25%
TH	G	Gulf Energy Development PCL SET:GULF	39.5	57%
IN		Adani Power Ltd NSE:ADANIPOWER	14	N/A
CN		SDIC Power Holdings Co Ltd SSE:600886	16.2	41%
IN		JSW Energy Ltd NSE:JSWENERGY	61.5	131%

				EBITDA Growth
CA		TransAlta Corp TSX:TA	Average EV/EBITDA: 26.3 4.9	5%
DE		Uniper SE XETRA:UN01	Negative Multiple: -142.5	N/A
SA		ACWA Power Co SAU:2082	114.5	106%
US		Vistra Corp NYSE:VST	11.6	39%
IN		NTPC Ltd NSE:NTPC	10.5	36%
CN		CGN Power Co Ltd SZSE:003816	15.3	89%
CN		China National Nuclear Power Co Ltd SSE:601985	16.5	102%
TH	G	Gulf Energy Development PCL SET:GULF	40.2	77%
IN		Adani Power Ltd NSE:ADANIPOWER	9.5	N/A
CN		SDIC Power Holdings Co Ltd SSE:600886	13.9	123%
IN		JSW Energy Ltd NSE:JSWENERGY	26.3	108%

				EBIT Growth
CA		TransAlta Corp TSX:TA	Average EV/EBIT: 32.8 9.1	10%
DE		Uniper SE XETRA:UN01	Negative Multiple: -87.5	N/A
SA		ACWA Power Co SAU:2082	139.2	120%
US		Vistra Corp NYSE:VST	19.3	53%
IN		NTPC Ltd NSE:NTPC	15.6	51%
CN		CGN Power Co Ltd SZSE:003816	15.3	19%
CN		China National Nuclear Power Co Ltd SSE:601985	16.5	21%
TH	G	Gulf Energy Development PCL SET:GULF	49.6	75%
IN		Adani Power Ltd NSE:ADANIPOWER	11.8	N/A
CN		SDIC Power Holdings Co Ltd SSE:600886	13.9	29%
IN		JSW Energy Ltd NSE:JSWENERGY	37.4	109%

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TransAlta Corp
TSX:TA

Relative Value

Valuation Multiples

Multiples Across Competitors

TA Competitors Multiples
TransAlta Corp Competitors

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Company

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Price Target

TransAlta Corp TSX:TA

Relative Value

Valuation Multiples

Multiples Across Competitors

TA Competitors Multiples TransAlta Corp Competitors

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Company

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TransAlta Corp
TSX:TA

TA Competitors Multiples
TransAlta Corp Competitors