Is FTAI Aviation Ltd. overvalued or undervalued?

As of 30 October 2024, the valuation grade for FTAI Aviation Ltd. has moved from risky to very expensive. This indicates that the company is currently overvalued. The P/E ratio stands at 32, significantly higher than the industry average, while the Price to Book Value is an astonishing 467.52. Additionally, the EV to EBITDA ratio is 19.67, suggesting that the company is trading at a premium compared to its earnings potential. In comparison to its peers, FTAI Aviation Ltd. has a higher P/E ratio than SEI Investments Co. at 17.30 and Stifel Financial Corp. at 15.61, which further emphasizes its overvaluation. The PEG ratio of 0.63 indicates that despite the high P/E, the growth expectations may not justify the price. Notably, FTAI's ROE is exceptionally high at 1479.81%, but this could be a result of its inflated share price rather than operational efficiency. Overall, the combination of high valuation ratios and peer comparisons leads to the conclusion that FTAI Aviation Ltd. is overvalued.