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TAC

TransAlta Corporation

Utilities · $3.5B market cap

Verdict

Share price

$12.35

close of Oct 3, 2026

Fair value

$19.65

Sticker Price

Payback Price

$7.86

buy price

Undervalued

TAC is Undervalued: at $12.35 it trades 37% below its fair value of $19.65. Its buy price (Payback Price) is $7.86, 36% below today's price. Business quality is limited: none of the 5 key numbers clears the 10% bar.

How we valued it

Owner Earnings. Earnings grow slowly (under 7% a year), but cash flow is steady, so we value it on its cash flow instead of its earnings.

Business quality

0 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth0.1% a year✗
Equity per share growth-4.8% a year✗
Sales growth-0.4% a year✗
Free cash flow growth4.5% a year✗
Return on invested capital5.2%✗

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Superinvestors

2 of the investors we track hold TAC. In Q2 2026, 1 trimmed. Who we track

Howard Marks

Oaktree Capital Management · as of Q2 2026

$41.5M

3,000,000 shares

First Eagle Investment Management

First Eagle Investment Management · as of Q2 2026

$281K

20,360 shares

Moves in Q2 2026

Trimmed: Howard Marks

About TransAlta Corporation

TransAlta Corporation specializes in the ownership, operation, and expansion of a diverse array of electricity generation facilities, with a geographical presence spanning Canada, the United States, and Australia. The company's activities are organized into four key divisions: Hydro, Wind and Solar, Gas, and Energy Transition. Within its portfolio, TransAlta operates plants powered by hydroelectric, wind, solar…

Independent Power Producers

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works