Is American Axle & Manufacturing Holdings, Inc. overvalued or undervalued?

As of 21 May 2025, the valuation grade for American Axle & Manufacturing Holdings, Inc. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a P/E ratio of 10, an EV to EBITDA of 3.66, and a Price to Book Value of 0.91, which suggest that despite a relatively low EV to EBITDA, the overall valuation metrics do not justify the current price level.
When compared to peers, American Axle's P/E ratio of 9.62 is notably lower than that of PHINIA, Inc., which stands at 18.52, highlighting a disparity in valuation within the sector. Additionally, the company's recent performance has been poor, with a year-to-date return of -29.67%, contrasting sharply with the S&P 500's positive return of 2.44% in the same period. This underperformance further supports the conclusion that American Axle is overvalued relative to its peers and market conditions.