Oil & Gas Midstream · NYSE
Current Price
$63.96
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on TC Energy Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Storage. The company builds and operates 93,300 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. In addition, it has approximately 4,900 km liquids pipeline system that connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. Further, the company owns or has interests in seven power generation facilities with a combined capacity of approximately 4,300 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Québec, and New Brunswick; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage capacity in Alberta. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.
ROIC (TTM)
4.7%
ROE (TTM)
12.8%
FCF Yield
2.26%
Based on trailing twelve-month data, TRP shows a free cash flow per share of N/A and a ROIC of 4.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.26% are important context metrics when evaluating TRP's stock valuation relative to peers.
The intrinsic value of TRP depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether TRP is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $63.96. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on TC Energy Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Midstream industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TRP's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For TC Energy Corporation, this means projecting how much free cash flow the Oil & Gas Midstream will produce over the next 5-10 years, then discounting those amounts to today's dollars. TRP's ROIC of 4.7% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TRP, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
