Is Alaska Air Group, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Alaska Air Group, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 11, which is notably lower than the peer average of approximately 15.89, and an EV to EBITDA ratio of 6.06, which is also less favorable compared to peers like SkyWest, Inc. at 10.15. Additionally, the PEG ratio of 0.78 suggests that the stock may not be priced appropriately relative to its growth prospects.
In comparison to its peers, American Airlines Group, Inc. has a P/E of 7.01, while Copa Holdings SA, which is considered very attractive, has a P/E of 8.04. This highlights that Alaska Air Group, Inc. is trading at a premium compared to these competitors. Furthermore, the company has underperformed against the S&P 500 in the year-to-date period, with a return of -11.35% compared to the index's 12.22%, reinforcing the notion that the stock may be overvalued in the current market environment.