Is Iridium Communications, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Iridium Communications, Inc. has moved from fair to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued based on its current financial metrics, with a P/E ratio of 24, a Price to Book Value of 5.79, and an EV to EBITDA of 11.42. In comparison, its peer EchoStar Corp. has a P/E of -27.06, while AST Spacemobile, Inc. shows a P/E of -57.36, both indicating a challenging environment for these companies.
Despite a recent uptick in stock price, Iridium's returns have lagged significantly behind the S&P 500, with a year-to-date return of -35.39% compared to the S&P 500's 12.22%. This underperformance over various periods reinforces the notion that the stock is currently overvalued.