Alcoa Valuation

AA -  USA Stock  

USD 32.08  1.50  4.47%

Do you wonder what the value of Alcoa Corp is? Alcoa Corp Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 41 Million. The current year Enterprise Value is expected to grow to about 5.3 B, whereas Tangible Asset Value is forecasted to decline to about 14.7 B.
Alcoa Corp shows a prevailing Real Value of $37.25 per share. The current price of the firm is $32.08. At this time, the firm appears to be undervalued. Our model approximates the value of Alcoa Corp from analyzing the firm fundamentals such as profit margin of (0.77) %, and Return On Equity of 1.24 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.

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Alcoa Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Alcoa Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
32.08
18th of June 2021
Share
Alcoa Corp is very steady asset. Calculation of real value of Alcoa Corp is based on 3 months time horizon. Increasing Alcoa Corp time horizon generally increases accuracy of value calculation and significantly improves 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.
37.25
Real Value
41.03
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 (6)
LowProjected EPSHigh
3.194.655.83
Details
Hype
Prediction
LowEstimated ValueHigh
30.0833.8637.64
Details
Naive
Forecast
LowNext ValueHigh
29.7333.5137.29
Details
7 Analysts
Consensus
LowTarget PriceHigh
14.0041.5056.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. Some money managers use Alcoa Corp's intrinsic value based on its ongoing forecasts of Alcoa Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by look to relative valuation against Alcoa Corp's closest peers. When choosing a valuation method Alcoa Corp, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

Alcoa Corp Investments

1.13 BillionShare

Alcoa Valuation Drivers Correlation

Many accounts on the financial statements of Alcoa Corp are highly interrelated and sometimes correlated. Consequently, when conducting Alcoa's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Alcoa
Click cells to compare fundamentals

Alcoa Market Cap

Alcoa Corp is rated below average in market capitalization category among related companies. Market capitalization of Aluminum industry is presently estimated at about 480.29 Billion. Alcoa Corp claims roughly 6.9 Billion in market capitalization contributing just under 2% to stocks in Aluminum industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

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 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  2.99  of Price to Book per Price to Sales. . As of June 18, 2021, Price to Book Value is expected to decline to 1.21

About Alcoa Corp Valuation

The equity 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 2021
Gross Profit1.3 B1.6 B
Profit Margin(0.018) (0.0194) 
Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania. Alcoa Corp operates under Aluminum classification in the United States and is traded on New York Stock Exchange. It employs 12900 people.

Alcoa Corp Quarterly Enterprise Value

6.91 BillionShare

Alcoa Corp Valuation Growth Rates

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.
Quick Ratio1.00
Earnings Quarterly Growth118.80%
Revenue Growth20.50%
Enterprise Value To Ebitda7.30
Earnings Growth116.30%
Enterprise Value To Revenue0.94

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.
Please continue to Trending Equities. 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Complementary Tools for Alcoa Corp Stock analysis

When running Alcoa Corp price analysis, check to measure Alcoa Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alcoa Corp is operating at the current time. Most of Alcoa Corp's value examination focuses on studying past and present price action to predict the probability of Alcoa Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alcoa Corp's price. Additionally, you may evaluate how the addition of Alcoa Corp to your portfolios can decrease your overall portfolio volatility.
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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 underlying business (such as 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 Alcoa Corp value 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.