Is Alaska Air Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Alaska Air Group, Inc. has moved from attractive to very expensive. This indicates that the company is overvalued at its current price of $47.31. Key valuation ratios include a P/E ratio of 11, an EV to EBITDA of 6.06, and a PEG ratio of 0.78, which suggest that the stock may not be justified at its current valuation compared to its earnings growth potential.
In comparison to its peers, Alaska Air Group's P/E ratio of 15.89 is significantly higher than American Airlines Group, Inc. at 7.01 and Copa Holdings SA at 8.04, indicating that investors are paying a premium for Alaska Air's shares relative to these competitors. Furthermore, the company's recent performance shows a year-to-date return of -26.93%, contrasting sharply with the S&P 500's return of 13.30% over the same period, reinforcing the notion that the stock may be overvalued.