Is Frontier Group Holdings, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Frontier Group Holdings, Inc. moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its P/E ratio of 14, which is significantly higher than the negative EV to EBITDA of -17.11 and a PEG ratio of 0.04, suggesting that the stock may not be justified at its current price level. In comparison to peers, American Airlines Group, Inc. has a P/E of 7.01, while Copa Holdings SA is considered very attractive with a P/E of 8.04, highlighting Frontier's relative overvaluation.
Furthermore, the company's recent stock performance shows a YTD return of -25.88%, underperforming the S&P 500's return of 12.22% during the same period. This underperformance reinforces the notion that Frontier Group Holdings, Inc. may not be a favorable investment at this time.