Gogo, Inc. Experiences Revision in Its Stock Evaluation Amid Mixed Valuation Metrics

Gogo, Inc., a small-cap player in the Telecom Equipment & Accessories sector, has recently undergone a valuation adjustment. The company currently exhibits a P/E ratio of 28, alongside a price-to-book value of 18.60. Its EV to EBIT stands at 23.53, while the EV to EBITDA is recorded at 18.14. Notably, Gogo's return on capital employed (ROCE) is at 11.47%, and its return on equity (ROE) is significantly high at 65.40%.
In comparison to its peers, Gogo's valuation metrics present a mixed picture. Liberty Broadband Corp. shows a more attractive P/E ratio of 7.24, while Telephone & Data Systems, Inc. and Globalstar, Inc. are categorized as risky, with P/E ratios of 50.98 and -587.43, respectively. United States Cellular Corp. also falls into the risky category with a P/E of 41.99.

Gogo's stock performance has lagged behind the S&P 500, with a year-to-date return of -5.50% compared to the index's 14.40%. Over the past three years, Gogo's stock has declined by 48.86%, contrasting sharply with the S&P 500's growth of 76.76%. This context highlights the challenges Gogo faces within its competitive landscape.