Alcoa Stock Valuation

AA -  USA Stock  

USD 61.21  3.19  5.50%

Do you wonder what the value of Alcoa Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Alcoa Corp, is its stock price multiplied by the total number of shares outstanding, calculating Alcoa Corp's enterprise value requires a different approach. It uses Alcoa Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 48.4 M. The current year Enterprise Value is expected to grow to about 5 B.
Alcoa Corp shows a prevailing Real Value of $61.49 per share. The current price of the firm is $61.21. At this time, the firm appears to be fairly valued. Our model approximates the value of Alcoa Corp from analyzing the firm fundamentals such as profit margin of 7.29 %, and Return On Equity of 18.24 % 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.

Alcoa Valuation 

 
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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.
Fairly Valued
Today 61.21
Share
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.
61.49
Real Value
64.80
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 (4)
LowProjected EPSHigh
6.066.266.39
Details
Hype
Prediction
LowEstimated ValueHigh
58.6661.9765.28
Details
Naive
Forecast
LowNext ValueHigh
54.6557.9561.26
Details
7 Analysts
Consensus
LowTarget PriceHigh
52.0061.6275.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, 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 looking to relative value analysis against Alcoa Corp's closest peers. When choosing an evaluation method for Alcoa Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Alcoa Corp Investments

1.07 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 Valuation Trend

Knowing Alcoa Corp's actual value is paramount for traders to make sound investment determinations. Alcoa Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Alcoa Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Alcoa Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Alcoa Market Cap

Alcoa Corp is rated third in market capitalization category among related companies. Market capitalization of Aluminum industry is presently estimated at about 255.44 Billion. Alcoa Corp holds roughly 11.16 Billion in market capitalization claiming about 4% of stocks in Aluminum industry.
Capitalization  Workforce  Revenue  Total debt  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 fourth in price to book category among related companies. It is rated fifth in beta category among related companies totaling about  0.84  of Beta per Price to Book. The ratio of Price to Book to Beta for Alcoa Corp is roughly  1.20 . 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.

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 2022
Gross Profit1.2 B1.5 B
Profit Margin(0.0207) (0.0223) 
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

9.71 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 Ratio0.79
Revenue Growth31.50%
Enterprise Value To Ebitda5.74
Enterprise Value To Revenue1.14

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.
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.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Complementary Tools for Alcoa 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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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.
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 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.