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

As of 8 September 2025, the valuation grade for American Axle & Manufacturing Holdings, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 10, an EV to EBITDA of 3.66, and a PEG ratio of 0.02, which suggests strong growth potential relative to its price. In comparison, its peer Luminar Technologies, Inc. has a significantly higher P/E ratio of -0.3724, highlighting American Axle's more favorable valuation metrics within the industry.
The stock has shown mixed performance against the S&P 500, with a 1-month return of 13.69% compared to the index's 2.33%, but a disappointing 3-year return of -27.47% against the S&P 500's 70.41%. This divergence in recent returns reinforces the notion that American Axle may be undervalued relative to its growth prospects and industry peers.