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

As of 17 October 2025, the valuation grade for American Axle & Manufacturing Holdings, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be undervalued, with a P/E ratio of 10, a price to book value of 0.91, and an EV to EBITDA ratio of 3.66, suggesting that it is trading at a discount compared to its earnings and asset values.
In comparison to peers, American Axle's P/E ratio of 9.51 is more favorable than Luminar Technologies, which has a negative P/E ratio, indicating potential challenges in profitability. Additionally, the company's PEG ratio of 0.02 further emphasizes its undervaluation relative to growth expectations. Despite this, the stock has underperformed against the S&P 500 over multiple periods, with a 1Y return of -13.67% compared to the S&P 500's 14.08%, highlighting the need for cautious optimism regarding its valuation.