Is Iridium Communications, Inc. overvalued or undervalued?

As of 22 April 2025, the valuation grade for Iridium Communications, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 24, an EV to EBITDA of 11.42, and a Price to Book Value of 5.79, all suggesting a premium valuation compared to industry norms.
In comparison to its peers, Iridium's P/E ratio of 24.91 is notably higher than EchoStar Corp., which has a negative P/E ratio of -9.24, highlighting a stark contrast in valuation. Additionally, while Iridium's PEG ratio stands at an attractive 0.20, the overall valuation suggests that the market may be pricing in excessive growth expectations. Recent stock performance shows that Iridium has outperformed the S&P 500 over the past year, but this does not mitigate the current overvaluation concerns.