Is Century Aluminum Co. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Century Aluminum Co. has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Notable ratios include a P/E ratio of 18, an EV to EBIT of 14.34, and a Price to Book Value of 2.70, which are all higher than its peers. For instance, Kaiser Aluminum Corp. has a P/E of 37.66 and an EV to EBITDA of 12.49, while Tredegar Corp. shows a P/E of 26.37 and an EV to EBITDA of 7.24.
In comparison to the broader market, Century Aluminum Co. has underperformed recently, with a year-to-date return of -5.71% against the S&P 500's 2.44%. This performance, combined with its elevated valuation ratios, reinforces the conclusion that the company is overvalued in its current market position.