Is Howmet Aerospace, Inc. overvalued or undervalued?

As of 20 June 2025, Howmet Aerospace, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high P/E ratio of 55, a Price to Book Value of 14.77, and an EV to EBITDA of 35.63. In comparison, RTX Corp. has a P/E of 46.92 and EV to EBITDA of 22.99, while Honeywell International, Inc. shows a more reasonable P/E of 32.76 and EV to EBITDA of 23.99, highlighting Howmet's significant premium over its peers.
Despite a robust ROCE of 23.46% and ROE of 27.09%, the company's valuation metrics suggest that it is priced excessively high relative to its earnings potential. The stock has performed exceptionally well recently, with a year-to-date return of 60.58%, significantly outpacing the S&P 500's 2.44% return, which may further inflate investor expectations and contribute to its current overvaluation status.