Is SkyWest, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for SkyWest, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 20, an EV to EBITDA of 10.21, and a PEG ratio of 0.10, which suggests that despite a low growth expectation, the stock price remains high relative to its earnings growth potential.
In comparison to its peers, SkyWest's P/E ratio of 19.09 is notably higher than Alaska Air Group, Inc. at 10.04 and Copa Holdings SA at 7.63, both of which are also classified as very expensive and very attractive, respectively. This disparity highlights SkyWest's elevated valuation in the market. Additionally, while SkyWest has outperformed the S&P 500 over the past year with a return of 23.10% compared to 10.26%, the overall valuation metrics suggest that the stock may not be justified at its current price level.