Is SkyWest, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for SkyWest, Inc. moved from very expensive to expensive. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 20, while the EV to EBITDA ratio is 10.21 and the PEG ratio is notably low at 0.10, indicating a potential disconnect between price and growth expectations.
In comparison to its peers, SkyWest's P/E ratio of 19.46 is significantly higher than American Airlines Group, Inc. at 7.01 and Copa Holdings SA at 8.04, both of which are trading at lower valuations. Additionally, SkyWest's EV to EBITDA ratio of 10.15 is also higher than that of Alaska Air Group, Inc. at 7.41, suggesting it is priced at a premium relative to its competitors. Despite a strong one-year return of 30.63%, which outperformed the S&P 500's 17.14%, the overall valuation metrics indicate that SkyWest, Inc. is overvalued in the current market.