Is SkyWest, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for SkyWest, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on key metrics, including a P/E ratio of 20, a Price to Book Value of 3.02, and an EV to EBITDA of 10.21. In comparison to peers, SkyWest's P/E ratio is significantly higher than that of American Airlines Group, Inc. at 7.01 and Copa Holdings SA at 8.04, which suggests that SkyWest's stock may be priced too high relative to its earnings potential.
Despite a strong three-year return of 455.95%, which outperformed the S&P 500's 81.19%, the recent one-month decline of -4.40% compared to the S&P 500's 0.96% indicates potential weaknesses in the stock's performance. Overall, the combination of high valuation ratios and recent performance trends reinforces the conclusion that SkyWest, Inc. is currently overvalued.