Is JetBlue Airways Corp. overvalued or undervalued?

As of 31 October 2023, the valuation grade for JetBlue Airways Corp. has moved from fair to risky, indicating a deterioration in its financial health and market position. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.05, an EV to EBITDA of 13.33, and a troubling ROE of -11.12%.
In comparison to its peers, JetBlue's valuation ratios are concerning; for instance, American Airlines Group has a P/E ratio of 7.0078 and an EV to EBITDA of 6.2279, while Copa Holdings boasts a more attractive EV to EBITDA of 5.3314. Furthermore, JetBlue's stock has significantly underperformed against the S&P 500, with a year-to-date return of -35.24% compared to the index's 12.22%, reinforcing the notion that the stock is currently overvalued.