Alcoa Valuation Overview

AA -- USA Stock  

USD 42.79  0.57  1.31%

Alcoa shows prevailing Real Value of $41.0685 per share. The current price of the firm is $42.79. At this time the firm appears to be over valued. Macroaxis approximates value of Alcoa from analyzing the firm fundamentals such as Profit Margin of 1.11% and Return On Equity of 8.06% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

We’re going to take a look at this company use only technical analysis, as the chart can provide a variety of information. However, I do not recommend using strictly technical or fundamental analysis, but rather a mixture of both.

The chart has show that is broke a resistance area between $25 and $26, which had been tested multiple times. Price did eventually end up breaking the resistance area, but did so on falling volume. After the breakout, price went sideways, creating a support level that has been tested twice, around the $28.50 area. It currently is in a range and this might be a great time to pay close attention because a break in either direction could signal a profit potential. So in the current situation, I would recommend waiting for price to break out of the current channel, which then could provide a larger movement in one direction.

Valuation Drivers Correlation
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Alcoa Corporation Valuation Data Drivers
Revenue Per Employee    Average Assets    Earnings Before Interest Taxes and Depreciation Amortization EBITDA    
Alcoa Market Cap
Alcoa Corporation is rated below average in market capitalization category among related companies. Market capitalization of Aluminum industry is presently estimated at about 66.51 Billion. Alcoa retains roughly 7.99 Billion in market capitalization claiming about 12% of stocks in Aluminum industry.
Capitalization  Total debt  Workforce  Valuation  Revenue
Horizon     30 Days    Login   to change
Alcoa Corporation is rated below average in price to sales category among related companies. It is rated below average in price to book category among related companies fabricating about  2.56  of Price to Book per Price to Sales.

Current Market Valuation

Alcoa Valuation Boundaries

Over Valued
September 19, 2018
42.79
Market Value
41.07
Real Value
Target Odds
  
47.40
Upside
Alcoa is not too volatile asset. Calculation of real value of Alcoa is based on 1 month time horizon. Increasing Alcoa time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.

Valuation Basics

Alcoa Enterprise Value Fundamentals

Quick Ratio0.76
Earnings Quarterly Growth0.00%
Revenue Growth25.20%
Payout Ratio0.00%
Enterprise Value To Ebitda3.92
Earnings Growth-2.50%
Enterprise Value To Revenue0.82
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