AA Relative Valuation
AA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AA is overvalued; if below, it's undervalued.
Historical Valuation
Alcoa Corp (AA) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of -7.13. The fair price of Alcoa Corp (AA) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：43.82
Fair
12.97
PE
1Y
3Y
5Y
Trailing
Forward
5.58
EV/EBITDA
Alcoa Corp. (AA) has a current EV/EBITDA of 5.58. The 5-year average EV/EBITDA is 6.45. The thresholds are as follows: Strongly Undervalued below -0.77, Undervalued between -0.77 and 2.84, Fairly Valued between 10.06 and 2.84, Overvalued between 10.06 and 13.67, and Strongly Overvalued above 13.67. The current Forward EV/EBITDA of 5.58 falls within the Historic Trend Line -Fairly Valued range.
7.14
EV/EBIT
Alcoa Corp. (AA) has a current EV/EBIT of 7.14. The 5-year average EV/EBIT is 9.41. The thresholds are as follows: Strongly Undervalued below -20.38, Undervalued between -20.38 and -5.49, Fairly Valued between 24.31 and -5.49, Overvalued between 24.31 and 39.20, and Strongly Overvalued above 39.20. The current Forward EV/EBIT of 7.14 falls within the Historic Trend Line -Fairly Valued range.
0.87
PS
Alcoa Corp. (AA) has a current PS of 0.87. The 5-year average PS is 0.66. The thresholds are as follows: Strongly Undervalued below 0.29, Undervalued between 0.29 and 0.48, Fairly Valued between 0.84 and 0.48, Overvalued between 0.84 and 1.03, and Strongly Overvalued above 1.03. The current Forward PS of 0.87 falls within the Overvalued range.
10.48
P/OCF
Alcoa Corp. (AA) has a current P/OCF of 10.48. The 5-year average P/OCF is 4.98. The thresholds are as follows: Strongly Undervalued below -31.08, Undervalued between -31.08 and -13.05, Fairly Valued between 23.01 and -13.05, Overvalued between 23.01 and 41.04, and Strongly Overvalued above 41.04. The current Forward P/OCF of 10.48 falls within the Historic Trend Line -Fairly Valued range.
14.55
P/FCF
Alcoa Corp. (AA) has a current P/FCF of 14.55. The 5-year average P/FCF is 4.30. The thresholds are as follows: Strongly Undervalued below -138.10, Undervalued between -138.10 and -66.90, Fairly Valued between 75.50 and -66.90, Overvalued between 75.50 and 146.70, and Strongly Overvalued above 146.70. The current Forward P/FCF of 14.55 falls within the Historic Trend Line -Fairly Valued range.
Alcoa Corp (AA) has a current Price-to-Book (P/B) ratio of 1.80. Compared to its 3-year average P/B ratio of 1.53 , the current P/B ratio is approximately 17.74% higher. Relative to its 5-year average P/B ratio of 1.73, the current P/B ratio is about 3.77% higher. Alcoa Corp (AA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -1.30%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 0.88% , the current FCF yield is about -100.00% lower.
1.80
P/B
Median3y
1.53
Median5y
1.73
4.54
FCF Yield
Median3y
-1.30
Median5y
0.88
Competitors Valuation Multiple
The average P/S ratio for AA's competitors is , providing a benchmark for relative valuation. Alcoa Corp Corp (AA) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 3.13%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AA increased by 16.49% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.37 to 7.28.
The secondary factor is the Revenue Growth, contributed 3.13%to the performance.
Overall, the performance of AA in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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