Is Alcoa Corp. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Alcoa Corp. has moved from very attractive to attractive, indicating a shift in its perceived value. Based on the current metrics, Alcoa appears to be undervalued, particularly when considering its P/E ratio of 8, a Price to Book Value of 1.25, and an EV to EBITDA of 3.14, which are significantly lower than those of its peers. For instance, Century Aluminum Co. has a P/E ratio of 18.04, while Kaiser Aluminum Corp. stands at 30.64, highlighting Alcoa's relative undervaluation in comparison to these competitors.
Additionally, Alcoa's PEG ratio of 0.04 and a robust dividend yield of 49.93% further support the argument for its undervaluation. Despite the recent underperformance, with a one-year return of -21.77% compared to the S&P 500's 11.00%, the long-term outlook remains positive, as evidenced by a 93.09% return over the past five years, which outpaces the S&P 500's 85.61% in the same period.