Alcoa Corp Valuation

AA Stock  USD 33.21  1.63  5.16%   
At this time, the firm appears to be overvalued. Alcoa Corp shows a prevailing Real Value of $30.82 per share. The current price of the firm is $33.21. Our model approximates the value of Alcoa Corp from analyzing the firm fundamentals such as profit margin of (0.06) %, and Return On Equity of -0.12 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
1.3339
Enterprise Value
6.6 B
Enterprise Value Ebitda
42.8482
Price Sales
0.5374
Forward PE
71.4286
Overvalued
Today
33.21
Please note that Alcoa Corp's price fluctuation is very steady at this time. Calculation of the real value of Alcoa Corp is based on 3 months time horizon. Increasing Alcoa Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Alcoa Corp is useful when determining the fair value of the Alcoa stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Alcoa Corp. Since Alcoa Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alcoa Stock. However, Alcoa Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  33.21 Real  30.82 Target  35.27 Hype  33.22 Naive  31.95
The real value of Alcoa Stock, also known as its intrinsic value, is the underlying worth of Alcoa Corp Company, which is reflected in its stock price. It is based on Alcoa Corp's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Alcoa Corp's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Alcoa Corp's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
30.82
Real Value
34.14
Upside
Estimating the potential upside or downside of Alcoa Corp helps investors to forecast how Alcoa stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alcoa Corp more accurately as focusing exclusively on Alcoa Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-0.83-0.39-0.19
Details
Hype
Prediction
LowEstimatedHigh
29.9033.2236.54
Details
Potential
Annual Dividend
LowForecastedHigh
0.290.300.31
Details
13 Analysts
Consensus
LowTarget PriceHigh
32.1035.2739.15
Details

Alcoa Corp Investments

(555.75 Million)

Alcoa Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Alcoa Corp's current stock value. Our valuation model uses many indicators to compare Alcoa Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Alcoa Corp competition to find correlations between indicators driving Alcoa Corp's intrinsic value. More Info.
Alcoa Corp is rated fourth in price to sales category among related companies. It is rated third in price to book category among related companies fabricating about  2.48  of Price To Book per Price To Sales. As of March 28, 2024, Price To Book Ratio is expected to decline to 1.02. Comparative valuation analysis is a catch-all model that can be used if you cannot value Alcoa Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alcoa Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alcoa Corp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alcoa Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alcoa Corp and how it compares across the competition.

About Alcoa Corp Valuation

The stock valuation mechanism determines the current worth of Alcoa Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Alcoa Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alcoa Corp based exclusively on its fundamental and basic technical indicators. By analyzing Alcoa Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Alcoa Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Alcoa Corp. We calculate exposure to Alcoa Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Alcoa Corp's related companies.
Last ReportedProjected for 2024
Gross Profit106 M100.7 M
Pretax Profit Margin(0.06)(0.05)
Operating Profit Margin(0.03)(0.03)
Net Loss(0.06)(0.06)
Gross Profit Margin 0.01  0.01 

8 Steps to conduct Alcoa Corp's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Alcoa Corp's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Alcoa Corp's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Alcoa Corp's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Alcoa Corp's revenue streams: Identify Alcoa Corp's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Alcoa Corp's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Alcoa Corp's growth potential: Evaluate Alcoa Corp's management, business model, and growth potential.
  • Determine Alcoa Corp's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Alcoa Corp's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Alcoa Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Alcoa Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of Alcoa Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Alcoa Corp represents a small ownership stake in the entity. As a stockholder of Alcoa, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Alcoa Corp Dividends Analysis For Valuation

The current year's Dividend Yield is expected to grow to 0.01, whereas Dividends Paid is forecasted to decline to about 61.6 M. . The current year's Retained Earnings is expected to grow to about (1.2 B). The current year's Retained Earnings Total Equity is expected to grow to about (487.4 M)
Last ReportedProjected for 2024
Dividends Paid64.8 M61.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio(0.11)(0.11)
Dividend Paid And Capex Coverage Ratio(0.20)(0.21)
There are various types of dividends Alcoa Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Alcoa shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Alcoa Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Alcoa pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Alcoa Corp by the value of the dividends paid out.

Alcoa Corp Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Alcoa Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding178.3 M
Quarterly Earnings Growth Y O Y0.81
Forward Price Earnings71.4286

Alcoa Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Alcoa Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Alcoa we look at many different elements of the entity such as Alcoa's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Alcoa Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Alcoa Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Alcoa Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Alcoa Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Alcoa Corp's worth.
When determining whether Alcoa Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Alcoa Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Alcoa Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Alcoa Corp Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alcoa Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For information on how to trade Alcoa Stock refer to our How to Trade Alcoa Stock guide.
Note that the Alcoa Corp information on this page should be used as a complementary analysis to other Alcoa Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.

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Is Alcoa Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alcoa Corp. If investors know Alcoa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alcoa Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.81
Dividend Share
0.4
Earnings Share
(3.65)
Revenue Per Share
59.275
Quarterly Revenue Growth
(0.03)
The market value of Alcoa Corp is measured differently than its book value, which is the value of Alcoa that is recorded on the company's balance sheet. Investors also form their own opinion of Alcoa Corp's value that differs from its market value or its book value, called intrinsic value, which is Alcoa Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alcoa Corp's market value can be influenced by many factors that don't directly affect Alcoa Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alcoa Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alcoa Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alcoa Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.