Is Alcoa Corp. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Alcoa Corp. has moved from very attractive to attractive, indicating a shift in perception of its value. The company appears to be undervalued, particularly when considering its P/E ratio of 8, which is significantly lower than the industry average, and a PEG ratio of 0.04, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 3.14, further supporting the notion that the stock is trading at a discount compared to its earnings potential.
In comparison to its peers, Century Aluminum Co. is deemed very expensive with a P/E of 18.04, while Kaiser Aluminum Corp. is also expensive at a P/E of 30.64. This highlights Alcoa's relative value within the non-ferrous metals industry. Notably, Alcoa's recent stock performance shows a 1-week return of 1.33% compared to the S&P 500's 1.05%, indicating a slight outperformance, although its year-to-date return of -13.39% lags behind the S&P 500's 12.22%. Overall, Alcoa Corp. presents a compelling investment opportunity given its attractive valuation metrics and potential for recovery.