Is SkyWest, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for SkyWest, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 20, a Price to Book Value of 3.02, and an EV to EBITDA ratio of 10.21, which are relatively high compared to its peers. For instance, American Airlines Group, Inc. has a P/E of 7.01 and an EV to EBITDA of 6.23, while Copa Holdings SA is valued attractively with a P/E of 8.04 and an EV to EBITDA of 5.33.
Despite a strong three-year return of 455.95%, which significantly outperformed the S&P 500's 81.19%, the recent performance shows a decline of 1.06% year-to-date compared to the S&P 500's 13.30%. This suggests that while SkyWest has had impressive long-term growth, its current valuation metrics indicate that it may not be a prudent investment at this time.