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

As of 11 August 2022, the valuation grade for Global Business Travel Group, Inc. moved from does not qualify to risky, indicating increased caution for investors. The company appears to be overvalued, particularly when considering its high P/E ratio of 54, which significantly exceeds the industry average, and a PEG ratio of 0.31 that suggests growth expectations are not being met. Additionally, the EV to EBITDA ratio stands at 10.27, which is relatively high compared to peers like Service Corp. International with a P/E of 21.11 and Planet Fitness, Inc. at 47.24.
In terms of performance, Global Business Travel Group, Inc. has seen a YTD return of -11.42%, while the S&P 500 has gained 12.22% in the same period, further emphasizing the company's struggles relative to the broader market. With a return of -69.00% over the last five years compared to the S&P 500's 96.61%, the valuation concerns are compounded by poor historical performance.