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, particularly when considering its P/E ratio of 10, which is lower than the peer average of approximately 9.51 for similar firms. Additionally, the EV to EBITDA ratio stands at 3.66, suggesting that the company is trading at a discount relative to its earnings potential, while the Price to Book Value of 0.91 further supports this undervaluation narrative.
In comparison to its peer Luminar Technologies, which has a P/E ratio of -0.37, American Axle shows a more favorable valuation profile. Despite the attractive valuation metrics, the company has faced challenges, as evidenced by its stock performance; it has underperformed the S&P 500 across multiple periods, including a 1-year return of -13.67% compared to the S&P 500's 14.08%. This underperformance highlights the potential for recovery as the market reassesses the company's value.