Is Copa Holdings SA overvalued or undervalued?

As of 20 November 2024, the valuation grade for Copa Holdings SA has moved from attractive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 8, an EV to EBITDA ratio of 5.16, and a PEG ratio of 0.80, all of which indicate a favorable valuation compared to its peers. In comparison, American Airlines Group, Inc. has a P/E ratio of 7.01, while Alaska Air Group, Inc. is considered very expensive with a P/E ratio of 15.89.
Copa Holdings SA has demonstrated strong performance relative to the S&P 500, with a year-to-date return of 35.06% compared to the index's 12.22%. This outperformance reinforces the notion that the stock is undervalued in the current market environment.