Alcoa is a leader in lightweight metals technology, engineering and manufacturing, with a major focus on automotive and commercial transport, air and space travel, as well as industrial and consumer electronics products. The company was founded in 1888 and is based in New York, New York.
AA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Alcoa Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alcoa Corp ranked in the 26th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for AA, they are:
Its compound free cash flow growth rate, as measured over the past 4.34 years, is -0.03% -- higher than just 20.36% of stocks in our DCF forecasting set.
Alcoa Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.85. This coverage rate is greater than that of merely 21.18% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Alcoa Corp experienced a tax rate of about 207% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 95.39% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Alcoa Corp? See OR, TREC, MAS, AEHL, and CDE.
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