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, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 11, which is significantly lower than the peer average of 15.89, and an EV to EBITDA ratio of 6.06, compared to peers like SkyWest, Inc. at 10.15. Additionally, the PEG ratio of 0.78 suggests that the stock is not priced favorably relative to its growth potential.
In comparison to its peers, American Airlines Group, Inc. has a P/E of 7.01, while Copa Holdings SA, which is rated very attractive, has a P/E of 8.04. This further emphasizes Alaska Air Group's relative overvaluation in the current market context. Over the past year, Alaska Air Group has returned 3.64%, which lags behind the S&P 500's 14.08%, reinforcing the notion that the stock may not be a compelling investment at its current price.