Alcoa’s Valuation: Is There Scope for Multiple Expansion in 2018?
In this part of our series, we’ll see how markets are valuing Alcoa (AA). Specifically, we’ll look at the forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, which is the preferred valuation metric for metal and mining stocks. Alcoa is trading at 5.2x its 2018 consensus EBITDA and at 5.4x its consensus 2019 EBITDA.