How to Play the Aluminum Industry: A Comparative Analysis (Continued from Prior Part) Aluminum companies’ valuation Previously in this series, we explored the aluminum industry’s value chain. Now, we’ll look at how the market values different aluminum companies. Please note that there are several valuation metrics that you can use. However, for companies in capital-intensive industries, like aluminum, EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) is the preferred valuation metric. Valuation The above chart shows the forward EV/EBITDA for certain companies. As you can see, the valuations of primary aluminum producers including Century Aluminum (CENX) and Norsk Hydro (NHYDY) have corrected steeply... More