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

As of 21 November 2025, the valuation grade for American Axle & Manufacturing Holdings, Inc. moved from expensive to very expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its P/E ratio of 10, which is higher than the peer average of approximately 9.51, and an EV to EBITDA ratio of 3.66, which is also above the industry benchmark. Additionally, the PEG ratio of 0.02 suggests that the stock may not be priced appropriately relative to its growth prospects.
In comparison to peers, Luminar Technologies, Inc. has a P/E ratio of -0.37, indicating a more risky valuation environment. Despite a recent positive performance with a 1-week return of 0.81% against the S&P 500's -1.95%, the longer-term outlook remains concerning, as the company has underperformed the S&P 500 over 1 year (-2.35% vs. 11.00%) and 3 years (-38.92% vs. 67.17%). This combination of high valuation ratios and poor relative performance suggests that American Axle & Manufacturing Holdings, Inc. is indeed overvalued.