Is Gogo, Inc. overvalued or undervalued?

As of 9 May 2025, Gogo, Inc. has moved from a valuation grade of very expensive to risky, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 18.14, and a ROE of 65.40%. In comparison, Anterix, Inc. has a P/E ratio of -19.76, while Spok Holdings, Inc. boasts a more attractive P/E of 20.67.
Despite Gogo's strong recent performance, with a year-to-date return of 74.04% compared to the S&P 500's 2.44%, the high valuation ratios suggest that the stock may not be justified at its current price of $14.08. The significant disparity in valuation metrics relative to peers reinforces the conclusion that Gogo, Inc. is overvalued in the current market environment.