Is Frontier Group Holdings, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Frontier Group Holdings, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 14, a Price to Book Value of 1.60, and a PEG ratio of 0.04, indicating potential for growth relative to its price.
In comparison to peers, Frontier's P/E ratio of 11.61 is more favorable than Alaska Air Group, Inc. at 10.04, but less favorable than Copa Holdings SA, which boasts a P/E of 7.63. Additionally, the EV to EBITDA ratio of -17.11 suggests that the company is facing challenges in generating earnings before interest, taxes, depreciation, and amortization. Notably, the stock has underperformed against the S&P 500, with a year-to-date return of -50.7% compared to the S&P's 2.44%, reinforcing the cautious outlook on its valuation.