TC Energy Corporation (TRP) Stock Valuation — PE Analysis
Oil & Gas Midstream · NYSE
Current Price
$69.39
PE Ratio (TTM)
29.4x
Intrinsic Value
$68.57
-1.2% margin of safety
COMPETITIVE MOAT
↑Regulated Infrastructure Assets
TC Energy operates a vast network of regulated natural gas pipelines. These assets benefit from stable, predictable cash flows due to their essential nature and regulated return on investment.
↑Long-Term Contracts
The company secures revenue through long-term, fee-based contracts with creditworthy counterparties. This insulates a significant portion of its earnings from commodity price volatility.
↑Scale and Network Effects
Its extensive, integrated pipeline system provides significant logistical advantages. This scale makes it difficult and costly for competitors to replicate its reach and service capabilities.
INVESTMENT RISKS
↓Regulatory and Political Uncertainty
Changes in environmental regulations, permitting processes, or political opposition can delay or halt critical expansion projects. This poses a significant threat to future growth.
↓Interest Rate Sensitivity
As a capital-intensive business, TC Energy relies heavily on debt financing. Rising interest rates increase borrowing costs, potentially impacting profitability and dividend sustainability.
↓Operational and Environmental Incidents
Pipeline leaks or other operational failures can lead to significant environmental damage, costly repairs, and reputational harm. These events can disrupt service and incur substantial liabilities.
Base case
TRP base case PE valuation
A base case PE valuation for TRP estimates a fair value of about $68.57 per share, against a current price of $69.39. The model assumes 6.4% annual earnings growth, a 29x target PE multiple, and a 10% discount rate.
Intrinsic Value
$68.57
Margin of safety
-1.2%
Expected annual return
-0.2%
Base case assumptions: 6.4% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TRP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for TC Energy Corporation respond.
Open PE Calculator for TRPCompany Overview
TC Energy Corporation (TRP), headquartered in Calgary, Canada, is a significant North American energy infrastructure enterprise, established in 1951. Its extensive operations are strategically divided into five key business units: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexican Natural Gas Pipelines, Liquids Pipelines, and Power & Storage. The company is responsible for constructing and managing a vast natural gas pipeline network, which stretches for 93,300 kilometers. This critical infrastructure facilitates the movement of natural gas from production basins to a variety of destinations, including local utility providers, electricity generating facilities, industrial sites, interconnected pipelines, liquefied natural gas (LNG) export terminals, and other commercial clients. Additionally, TC Energy operates regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet, alongside approximately 118 billion cubic feet of non-regulated natural gas storage capacity located solely within Alberta. Furthermore, TC Energy oversees a liquids pipeline system spanning roughly 4,900 kilometers. This system efficiently transports crude oil from Alberta's supply regions to major refining centers across Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. Its asset portfolio also includes ownership or interests in seven power generation facilities. These plants, situated in Alberta, Ontario, Québec, and New Brunswick, have a combined output of approximately 4,300 megawatts and are fueled by natural gas and nuclear energy sources. The organization was previously known as TransCanada Corporation until it officially rebranded to TC Energy Corporation in May 2019.
Financial Metrics — TRP PE Stock Valuation Data
PE Ratio (TTM)
29.4x
PEG Ratio
n/m
Earnings Yield
3.41%
ROE (TTM)
12.5%
Revenue/Share (TTM)
$15.14
Dividend Yield
3.53%
Debt/Equity
2.25x
Frequently Asked Questions
What is the PE ratio of TRP?
The trailing twelve-month PE ratio of TRP reflects how much investors pay per dollar of TC Energy Corporation's earnings. This metric is most useful when compared to Oil & Gas Midstream peers and the company's own historical range.
Is TRP overvalued based on PE ratio?
TRP's PE of 29.4x combined with a PEG ratio of -1.20 provides a growth-adjusted perspective. TRP has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Oil & Gas Midstream, a DCF analysis may be more appropriate.
How do I value TRP stock using PE ratio?
To value TC Energy Corporation using PE: (1) Compare the current PE (29.4x) against the Oil & Gas Midstream median to assess relative pricing, (2) check the PEG ratio (-1.20) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of TRP?
TRP's PEG ratio is -1.20, calculated by dividing the PE ratio (29.4x) by the expected earnings growth rate. Because TRP has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for TRP stock valuation?
PE ratio gives a quick relative read — how TRP is priced versus Oil & Gas Midstream peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See TRP DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value TRP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.