Is Kaiser Aluminum Corp. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Kaiser Aluminum Corp. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 38, significantly higher than its peer Alcoa Corp., which has a P/E of 8.54, indicating a stark valuation disparity. Additionally, the EV to EBITDA ratio is 12.65, again higher than Alcoa's 3.42, and the Price to Book Value is 2.37, suggesting that the market is pricing the company at a premium compared to its tangible assets.
In comparison to its peers, Kaiser Aluminum Corp. is positioned less favorably, with Century Aluminum Co. classified as very expensive with a P/E of 18.04. The company's recent stock performance shows a 1-year return of 12.37%, which lags behind the S&P 500's return of 17.14% for the same period, reinforcing the notion that the stock may not be justified at its current valuation levels.