Is Alcoa Corp. overvalued or undervalued?

As of 16 April 2025, Alcoa Corp. has moved from an attractive to a very attractive valuation grade, indicating a strong positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 8, a Price to Book Value of 1.25, and an EV to EBITDA ratio of 3.14. These metrics suggest that Alcoa is trading at a significant discount compared to its earnings potential and asset value.
In comparison to its peers, Alcoa's P/E ratio of 7.9991 and EV to EBITDA of 3.206 highlight its competitive positioning within the industry. Notably, Alcoa's PEG ratio stands at an impressive 0.04, indicating that the stock is undervalued relative to its growth prospects. While the stock has underperformed the S&P 500 year-to-date, with a return of -24.01% compared to the index's 2.44%, the strong fundamentals suggest that there may be a turnaround potential for investors.