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TC Energy stock has delivered a strong 132.9% total return over the past three years. At around C$86.15, however, the broader valuation checks suggest it no longer looks obviously cheap. The share price performance, combined with the current multiples and internal value score, raises the question of how much upside is already reflected in the current price.

• TC Energy has returned 132.9% over three years, which signals that expectations for the business are already embedded in the share price.

• Future valuation may be shaped by how consistently TC Energy converts its asset base into cash flow. Any increase in funding needs or balance sheet pressure could weigh on what investors are willing to pay.

• With a low valuation score of 2 out of 6 checks , the stock leans more towards fully priced than a clear bargain on the broad set of metrics.

The issue now is whether TC Energy's recent share price level still offers an appealing entry point or mainly reflects gains that are already behind it.

Find out why TC Energy's 24.8% return over the last year is lagging behind its peers.

Does TC Energy Look Fairly Valued on Earnings?

The P/E multiple suits TC Energy because earnings remain a central yardstick for a mature, infrastructure heavy business. On this measure, TC Energy trades on about 24.5x earnings, which rounds to 24.5x. That sits below the peer group average of 28.8x and modestly above the wider oil and gas industry average of 21.5x.

The tailored fair P/E ratio for TC Energy is 25.7x, which reflects its mix of growth prospects, profitability profile, size, and risk. The current 24.5x level is slightly under that fair ratio, but not by a dramatic margin. This indicates that the recent share price already incorporates much of what the model anticipates without extending too far in either direction.

On the P/E multiple, TC Energy stock appears to be priced at roughly fair value with only a small discount to the modelled fair level.

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

The TC Energy Narrative: What Would Justify Today's Price?

Simply Wall St Narratives for TC Energy pick up where the P/E discussion leaves off and explain which paths for growth, margins and earnings would need to occur for the stock to be worth materially more or less than today's price. These are based on community scenarios hosted on the company's Community page. Rather than relying on a single multiple or model, each narrative presents the assumptions behind its fair value view so you can later compare them with actual results.