Is Global Business Travel Group, Inc. overvalued or undervalued?

As of 11 August 2022, the valuation grade for Global Business Travel Group, Inc. has moved from does not qualify to risky. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 54, significantly higher than the industry average, while the EV to EBITDA ratio is 10.27, indicating a premium valuation compared to peers. Notably, the PEG ratio is 0.31, suggesting that the stock may be overvalued relative to its growth potential.
In comparison to peers, Life Time Group Holdings, Inc. has a P/E of 26.98 and an EV to EBITDA of 10.47, while Valvoline, Inc. shows a P/E of 17.31 and an EV to EBITDA of 13.34. These metrics highlight that Global Business Travel Group, Inc. is trading at a higher valuation despite its lower return on equity of 5.20% compared to the industry standards. Additionally, the company's stock has underperformed against the S&P 500 over the past year, further reinforcing the notion of overvaluation.