Is American Airlines Group, Inc. overvalued or undervalued?

As of 23 January 2020, the valuation grade for American Airlines Group, Inc. moved from fair to risky, indicating a shift towards greater concern regarding its valuation. The company appears to be overvalued, given its P/E ratio of 6, which is significantly lower than the industry average, and a negative price to book value of -1.72. Additionally, the EV to EBITDA ratio stands at 6.00, suggesting that the market may not be valuing the company's earnings potential favorably compared to its peers.
In comparison to its peers, American Airlines has a P/E ratio of 7.01, while Alaska Air Group, Inc. is very expensive at 15.89, and Copa Holdings SA is very attractive at 8.04. The recent stock performance has also been underwhelming, with a year-to-date return of -27.83%, contrasting sharply with the S&P 500's gain of 12.22% during the same period, reinforcing the notion that the stock is currently overvalued.