Is The Western Union Co. overvalued or undervalued?

As of 29 October 2020, The Western Union Co. has moved from a grade of risky to very attractive, indicating a significant positive shift in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 3, which is substantially lower than the industry average. Additionally, the PEG ratio stands at an impressive 0.07, suggesting strong growth potential relative to its price, while the EV to EBITDA ratio is also favorable at 2.07.
In comparison to its peers, The Western Union Co. shows a P/E of 3.0452, while a notable competitor has a P/E of 1.6894, highlighting that Western Union is trading at a lower valuation despite its attractive growth metrics. Furthermore, the company's dividend yield is extraordinarily high at 1125.96%, which may attract income-focused investors. Despite recent underperformance against the S&P 500, where it has seen a 1-year return of -31.52% compared to the index's 10.26%, the overall valuation metrics suggest that the stock is positioned as an undervalued opportunity in the market.