Is Allegiant Travel Co. overvalued or undervalued?

As of 31 July 2024, the valuation grade for Allegiant Travel Co. moved from expensive to risky, indicating a shift in perception regarding its market worth. The company is currently considered overvalued, with a P/E ratio of 10, which is higher than the peer average of 9.39 for similar companies such as American Airlines Group, Inc. at 7.01 and Copa Holdings SA at 8.04. Additionally, Allegiant's EV to EBITDA ratio stands at 5.14, which is also above the peer average of 5.38, while its PEG ratio of 0.27 suggests that the stock may not be priced attractively in relation to its growth prospects.
In terms of recent performance, Allegiant has struggled, with a year-to-date return of -33.58% compared to the S&P 500's positive return of 12.22%. This stark contrast further reinforces the notion that Allegiant is overvalued relative to its peers and the broader market.