Is Howmet Aerospace, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Howmet Aerospace, Inc. moved from expensive to fair, indicating a shift in perception regarding its market value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 55, a Price to Book Value of 14.77, and an EV to EBITDA ratio of 35.63. In comparison to peers, RTX Corp. has a P/E of 37.08, while Honeywell International, Inc. shows a P/E of 30.10, suggesting that Howmet's valuation is relatively higher but still within a reasonable range for the aerospace sector.
The company's strong performance is underscored by a year-to-date return of 73.43%, significantly outpacing the S&P 500's return of 13.30% over the same period. This robust return, along with a PEG ratio of 1.12 and a high ROE of 27.09%, reinforces the notion that Howmet Aerospace is positioned well within its industry, despite its elevated valuation ratios.