Alcoa Current Valuation vs. Price to Earning

AA -- USA Stock  

USD 44.81  0.46  1.02%

The Drivers Module shows relationships between Alcoa's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Alcoa Corporation over time as well as its relative position and ranking within its peers. Check also Trending Equities

Alcoa Price to Earning vs. Current Valuation Fundamental Analysis

Alcoa Corporation is rated below average in current valuation category among related companies. It is rated fifth in price to earning category among related companies . The ratio of Current Valuation to Price to Earning for Alcoa Corporation is about  147,048,960 
Enterprise Value is a firm valuation proxy that approximates current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Alcoa 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
=
8.77 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investor monitor on a daily basis. Holding a low PE stock is less risky because. When a company's profitability fall, it is likely that earnings will also go down..In other words, if you start from a lower position your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Alcoa 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
=
59.64 times
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Alcoa Price to Earning Comparison

Alcoa is rated fourth in price to earning category among related companies.

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Current Valuation

Alcoa Current Valuation Analysis
Alcoa Corporation is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Non-ferrous Metals Production And Products industry is presently estimated at about 668.84 Billion. Alcoa claims roughly 8.77 Billion in current valuation contributing just under 2% to all equities under Non-ferrous Metals Production And Products industry.