TC Energy (TSX:TRP) Has Investors Looking Closer After Its Latest Update

TC Energy (TSX:TRP) is back in focus after a 1.06% share price gain on 8 September 2026, as stronger 2026 guidance and sector support from higher oil prices drew fresh investor attention.

TC Energy’s CA$87.45 share price sits on a year-to-date share price return of 13.79%, while total shareholder return over one year is 27.00% and around 2x over both three and five years, signalling momentum that has strengthened around the recent guidance upgrade and sector tailwinds.

Scan beyond TC Energy and see how other regulated infrastructure players stack up on quality and valuation using our curated list of 12 high quality undervalued stocks.

TC Energy now appears to be a stronger business, supported by upgraded 2026 guidance and a powerful multi year run. The key question is whether that resilience is already fully reflected in today’s CA$87.45 share price.

Most Popular Narrative: 11.5% Undervalued

On the most followed narrative, TC Energy screens undervalued, with a fair value of CA$98.78 set against the current CA$87.45 share price, putting the focus squarely on whether the underlying assumptions hold.

Investors may be overestimating TC Energy's long-term revenue and EBITDA growth by assuming that the current surge in North American natural gas demand, driven by LNG export growth, coal-to-gas conversions, data center buildouts, and electrification, will persist at elevated rates, despite mounting global pressures for renewables and potential demand destruction for fossil fuels over the long run.

Read the complete narrative. Read the complete narrative.

Want to see what sits under that CA$98.78 figure for TC Energy? Revenue lines, profit margins and the earnings multiple are all wired together in a tight forecast. The fair value hinges on how those three levers interact over the next few years, not on a single bold bet.

Result: Fair Value of CA$98.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

Still, if North American gas demand weakens or regulatory costs rise faster than expected, the TC Energy narrative underpinning that CA$98.78 fair value could unravel.

Find out about the key risks to this TC Energy narrative.

Another View: TC Energy Looks Expensive On Earnings

On a simple earnings yardstick, TC Energy screens differently. The current P/E of 24.9x is higher than the Canadian Oil and Gas industry average of 20.5x and even above a fair ratio of 22.8x, which points to valuation risk rather than a clear bargain. If sentiment cools, how much of that premium still holds up for you?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals on TC Energy's valuation and future risks. Act while the data is fresh and examine both sides of the debate with 1 key reward and 2 important warning signs.

Looking for more investment ideas beyond TC Energy?

If TC Energy has sharpened your focus on quality, do not stop here. Use clear data and side by side comparisons to pressure test every new idea you consider.

• Target resilience first and scan a list of solid balance sheet and fundamentals (7 results) to see which businesses pair healthy finances with consistent fundamentals.
• Chase value intelligently and review a 12 high quality undervalued stocks that highlights companies where price and quality still look out of sync.
• Aim for hidden potential and track a 9 high quality undiscovered gems that surfaces lesser known opportunities before they hit everyone’s radar.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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