Is Kaiser Aluminum Corp. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Kaiser Aluminum Corp. has moved from very attractive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued at this time. Key ratios include a P/E ratio of 38, an EV to EBITDA of 12.65, and a Price to Book Value of 2.37, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Kaiser Aluminum's P/E ratio of 38 is notably higher than Century Aluminum Co.'s 16.16 and Tredegar Corp.'s 26.37, which further supports the conclusion of overvaluation. Additionally, while Kaiser has a high dividend yield of 206.54%, its ROCE and ROE are relatively low at 5.92% and 6.18%, respectively, indicating inefficiencies in generating returns on capital. Despite a recent positive trend in stock performance compared to the S&P 500 over the past month, the overall financial metrics suggest that Kaiser Aluminum Corp. is not a compelling investment at its current valuation.