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 its current 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 American Airlines Group, Inc. at 7.01 and Copa Holdings SA at 8.04, which suggests that SkyWest is trading at a premium relative to its competitors.
Despite a strong historical performance, with a three-year return of 455.95% compared to the S&P 500's 81.19%, recent returns have been less favorable, as evidenced by a year-to-date decline of 1.06% against the S&P 500's 13.30% gain. This divergence in performance further supports the conclusion that SkyWest, Inc. is currently overvalued.