Is Century Aluminum Co. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Century Aluminum Co. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current metrics, with a P/E ratio of 18, a Price to Book Value of 2.70, and an EV to EBIT of 14.34. In comparison, Alcoa Corp. has a more attractive P/E of 8.54, while Kaiser Aluminum Corp. is deemed expensive with a P/E of 30.64, highlighting that Century Aluminum Co. is trading at a premium relative to its peers.
Despite its overvaluation, Century Aluminum Co. has shown impressive stock performance, with a year-to-date return of 47.64% compared to the S&P 500's 12.22%, and a one-year return of 89.30% versus the S&P 500's 17.14%. This strong performance may reflect investor optimism, but the current valuation metrics suggest that the stock may not be justified at these levels.