Alcoa Closes at $51.85, Seen 18% Undervalued Against $62.98 Fair Value

1 articles · Updated · Yahoo Finance · Aug 23

$51.85 was Alcoa's closing price on Aug. 19, leaving the aluminum producer about 18% below a narrative fair value estimate of $62.98 after a recent rebound.
17.2% is the stock's one-month gain, even after a 27.36% drop over three months, as investors reassess whether the rally has fully priced in the company's outlook.
1.8% annual revenue growth and margin expansion to 14.1% from 9.4% over three years underpin the higher valuation case.
10.8 times earnings is Alcoa's P/E, versus a 21.1 industry average and an 18.2 fair ratio, though tariff volatility and Western Australia mine-approval risks could challenge that discount.