Latest Ratios: P/E Ratio 9.9x · EV/EBITDA 9.2x · ROE 20.4%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.6B | $14.0B | $8.1B | $6.1B | $8.2B | $11.3B | $4.3B | $4.0B | $5.0B | $10.1B | $5.1B |
| Enterprise Value | $12.7B | $15.0B | $9.8B | $7.1B | $8.7B | $11.4B | $5.3B | $5.0B | $5.7B | $10.1B | $5.7B |
| P/E Ratio → | 9.92 | 11.97 | 134.93 | — | — | 26.36 | — | — | 22.15 | 46.44 | — |
| P/S Ratio | 0.91 | 1.09 | 0.66 | 0.57 | 0.64 | 0.91 | 0.46 | 0.38 | 0.37 | 0.86 | 0.55 |
| P/B Ratio | 1.87 | 2.26 | 1.57 | 1.04 | 1.25 | 1.80 | 0.85 | 0.68 | 0.66 | 1.48 | 0.67 |
| P/FCF | 20.51 | 24.68 | 192.54 | — | 24.06 | 21.36 | 104.57 | 12.96 | 102.27 | 12.30 | — |
| P/OCF | 9.81 | 11.81 | 13.00 | 66.51 | 10.01 | 12.30 | 10.88 | 5.80 | 11.19 | 8.23 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.17 | 0.80 | 0.66 | 0.68 | 0.91 | 0.57 | 0.48 | 0.42 | 0.86 | 0.61 |
| EV / EBITDA | 9.18 | 10.90 | 5.40 | 11.64 | 3.77 | 3.76 | 4.48 | 3.11 | 1.81 | 4.11 | 5.18 |
| EV / EBIT | 16.73 | 12.31 | 21.95 | — | 10.81 | 8.16 | 16.63 | — | 3.26 | 8.01 | 70.59 |
| EV / FCF | — | 26.54 | 232.54 | — | 25.54 | 21.46 | 129.37 | 16.29 | 116.33 | 12.35 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.9% | 16.9% | 12.3% | 2.3% | 15.1% | 21.1% | 8.2% | 11.5% | 19.9% | 17.1% | 7.6% |
| Operating Margin | 5.9% | 5.9% | 9.6% | -0.2% | 13.3% | 19.0% | 5.7% | 8.5% | 17.9% | 14.5% | 4.1% |
| Net Profit Margin | 9.0% | 9.0% | 0.5% | -6.1% | -1.0% | 3.4% | -1.8% | -10.7% | 1.8% | 1.8% | -4.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.4% | 20.4% | 1.1% | -10.5% | -1.9% | 7.6% | -3.1% | -16.7% | 3.5% | 3.0% | -4.2% |
| ROA | 7.7% | 7.7% | 0.4% | -4.5% | -0.8% | 2.9% | -1.2% | -7.3% | 1.5% | 1.3% | -2.4% |
| ROIC | 8.1% | 8.1% | 12.8% | -0.3% | 19.0% | 28.7% | 6.2% | 8.8% | 24.0% | 16.9% | 3.0% |
| ROCE | 6.6% | 6.6% | 10.7% | -0.2% | 14.4% | 19.8% | 4.4% | 7.1% | 17.6% | 12.2% | 2.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.44 | 0.44 | 0.55 | 0.34 | 0.28 | 0.30 | 0.52 | 0.32 | 0.24 | 0.21 | 0.19 |
| Debt / EBITDA | 1.99 | 1.99 | 1.56 | 3.24 | 0.81 | 0.62 | 2.21 | 1.18 | 0.57 | 0.57 | 1.31 |
| Net Debt / Equity | — | 0.17 | 0.33 | 0.18 | 0.08 | 0.01 | 0.20 | 0.17 | 0.09 | 0.01 | 0.08 |
| Net Debt / EBITDA | 0.76 | 0.76 | 0.93 | 1.69 | 0.22 | 0.02 | 0.86 | 0.63 | 0.22 | 0.02 | 0.54 |
| Debt / FCF | — | 1.86 | 40.00 | — | 1.47 | 0.10 | 24.80 | 3.33 | 14.06 | 0.06 | — |
| Interest Coverage | 7.73 | 7.73 | 2.85 | -4.46 | 7.62 | 7.15 | 2.18 | -2.62 | 14.32 | 12.14 | 0.33 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.45 | 1.45 | 1.75 | 1.56 | 1.64 | 1.38 | 1.48 | 1.30 | 1.13 |
| Quick Ratio | 0.87 | 0.87 | 0.86 | 0.74 | 0.94 | 0.95 | 1.13 | 0.74 | 0.86 | 0.86 | 0.72 |
| Cash Ratio | 0.46 | 0.46 | 0.34 | 0.31 | 0.45 | 0.56 | 0.58 | 0.34 | 0.38 | 0.42 | 0.30 |
| Asset Turnover | — | 0.80 | 0.87 | 0.76 | 0.86 | 0.83 | 0.63 | 0.72 | 0.84 | 0.68 | 0.56 |
| Inventory Turnover | 4.90 | 4.90 | 5.35 | 4.85 | 4.46 | 5.02 | 6.16 | 5.65 | 5.95 | 6.72 | 7.43 |
| Days Sales Outstanding | — | 36.07 | 37.12 | 27.55 | 26.00 | 25.94 | 21.65 | 22.95 | 27.08 | 32.32 | 32.64 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 0.7% | 1.1% | 1.2% | 0.9% | 0.2% | — | — | — | — | — |
| Payout Ratio | 9.0% | 9.0% | 148.3% | — | — | 4.4% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.1% | 8.4% | 0.7% | — | — | 3.8% | — | — | 4.5% | 2.2% | — |
| FCF Yield | 4.9% | 4.1% | 0.5% | — | 4.2% | 4.7% | 1.0% | 7.7% | 1.0% | 8.1% | — |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 0.0% | 6.1% | 1.3% | 0.0% | 0.0% | 1.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.9% | 0.7% | 1.3% | 1.2% | 7.0% | 1.5% | 0.0% | 0.0% | 1.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $263M | $214M | $178M | $181M | $190M | $186M | $185M | $189M | $187M | $183M |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying AA stock.
Alcoa Corporation's current P/E ratio is 9.9x. The historical average is 48.4x.
Alcoa Corporation's current EV/EBITDA is 9.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.9x.
Alcoa Corporation's return on equity (ROE) is 20.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -0.5%.
Based on historical data, Alcoa Corporation is trading at a P/E of 9.9x. Compare with industry peers and growth rates for a complete picture.
Alcoa Corporation's current dividend yield is 0.90% with a payout ratio of 9.0%.
Alcoa Corporation has 16.9% gross margin and 5.9% operating margin.
Alcoa Corporation's Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Aluminum price volatility exposure
Metrics are mathematically derived from official filings.
Margin Recovery Led by Pricing
Gross margin expanded to 25.2% in 2026Q2 from 10.0% a year earlier, per financial statements, while operating margin reached 18.1%, indicating strong pricing power and cost discipline.
The sequential improvement from 21.3% gross margin in 2026Q1 to 25.2% in 2026Q2, as reported in the latest quarterly data, suggests that Alcoa is capturing higher aluminum prices while maintaining cost control. Operating margin of 18.1% in 2026Q2 is the highest in the ten-quarter window, reflecting operating leverage. However, net margin of 10.3% trails operating margin, implying significant non-operating charges or taxes that investors should monitor for earnings quality.
ROIC Rebound After Cyclical Trough
ROIC swung from 0.2% in 2024Q1 to 6.6% in 2026Q2, based on reported figures, while ROE improved to 5.7%, indicating a cyclical recovery in capital efficiency.
The ten-quarter trend shows ROIC oscillating with aluminum prices, hitting a low of -1.0% in 2025Q4 before recovering to 6.6% in 2026Q2. This volatility underscores the cyclicality of the business, but the recent improvement suggests that Alcoa is generating returns above its cost of capital, albeit modestly. The gap between ROE (5.7%) and ROIC (6.6%) indicates that leverage is not amplifying returns significantly, which is consistent with the deleveraging seen on the balance sheet.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 51 days in 2026Q2 from 38 days in 2024Q4, per financial statements, driven by higher DIO and DPO, signaling increased working capital absorption.
The CCC has been volatile, ranging from 38 to 58 days over the past ten quarters, with 2026Q2 at 51 days. DSO improved to 36 days from 38 in the prior quarter, but DIO rose to 71 days, suggesting higher inventory levels, possibly in anticipation of stronger demand. DPO also increased to 56 days, indicating Alcoa is stretching supplier payments, which may reflect improved bargaining power but could also strain supplier relationships if prolonged.
Deleveraging Reduces Financial Risk
Debt-to-equity fell to 0.30 in 2026Q2 from a peak of 0.80 in 2025Q3, as per balance sheet data, while interest coverage improved to 14.39x, indicating a more comfortable debt service position.
The sharp reduction in total debt from $5.2B in 2025Q3 to $2.2B in 2026Q2, based on reported figures, has normalized leverage metrics. D/EBITDA dropped to 2.50 from an extreme 54.94 in 2025Q4, reflecting both lower debt and higher EBITDA. Interest coverage of 14.39x in 2026Q2 is robust, suggesting that Alcoa can comfortably service its debt even if aluminum prices decline. However, the 2025Q3 debt spike highlights the potential for leverage to re-emerge if cash flows deteriorate.
Liquidity Buffer Remains Adequate
Current ratio improved to 1.53 in 2026Q2 from 1.45 in 2024Q4, per recent filings, while quick ratio of 0.92 indicates reliance on inventory to meet short-term obligations.
The current ratio of 1.53 suggests that Alcoa has sufficient current assets to cover current liabilities, but the quick ratio of 0.92, which excludes inventory, points to a thinner liquidity cushion. This implies that under a severe stress scenario, Alcoa may need to liquidate inventory or access credit lines to meet obligations. Cash of $1.4B provides a buffer, but the working capital swings observed in the cash flow statement warrant monitoring.
P/E Misleading for Cyclical Earnings
The trailing P/E of 11.63 understates cyclicality, as earnings are near a peak; forward P/E of 7.88 may be more indicative, but investors should use EV/EBITDA or P/B for a clearer picture.
Alcoa's P/E is highly sensitive to the aluminum price cycle, with earnings swinging from losses in 2024Q1 to record profits in 2026Q2. A low P/E can appear attractive but may be a value trap if earnings are at a cyclical peak. EV/EBITDA of 10.63 is more stable and reflects the company's enterprise value relative to cash earnings, while P/B of 2.19 provides a floor based on asset value. Investors should focus on mid-cycle earnings power rather than trailing P/E to avoid mispricing the cycle.