Alcoa Valuation Overview

AA -- USA Stock  

USD 28.63  0.31  1.09%

Alcoa shows prevailing Real Value of $31.3635 per share. The current price of the firm is $28.63. At this time the firm appears to be under valued. Macroaxis approximates value of Alcoa from analyzing the firm fundamentals such as Profit Margin of (0.09)% and Return On Equity of 7.83% 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.

Investments

Valuation Drivers Correlation

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Alcoa Corporation Valuation Data Drivers
Net Income Per Employee    Enterprise Value    Market Capitalization    

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 53.53 Billion. Alcoa retains roughly 5.53 Billion in market capitalization claiming about 10% of stocks in Aluminum industry.
Capitalization  Total debt  Revenue  Valuation  Workforce
Horizon     30 Days    Login   to change
Alcoa Corporation is rated below average in price to earning category among related companies. It is rated below average in beta category among related companies totaling about  0.02  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Alcoa Corporation is roughly  41.17 

Current Market Valuation

Alcoa Valuation Boundaries

Under Valued
December 11, 2018
28.63
Market Value
31.36
Real Value
Target Odds
  
41.74
Upside
Alcoa is not very risky asset. Calculation of real value of Alcoa is based on 2 months 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 Ratio0.74
Revenue Growth14.40%
Enterprise Value To Ebitda3.25
Enterprise Value To Revenue0.73
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