Is The Western Union Co. overvalued or undervalued?

As of 29 October 2020, the valuation grade for The Western Union Co. moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, especially when considering its P/E ratio of 3, a PEG ratio of 0.07, and an EV to EBITDA ratio of 2.07. In comparison, Blue Owl Capital Corp. has a P/E of 10.91, and Avis Budget Group, Inc. has a much higher P/E of 40.36, highlighting the relative attractiveness of Western Union's valuation.
Despite its appealing valuation metrics, the company's stock has underperformed against the S&P 500, with a year-to-date return of -22.64% compared to the index's 12.22%. This trend continues over longer periods, with a 5-year return of -63.80% versus the S&P 500's 96.61%, suggesting that while the stock may be undervalued, it has faced significant challenges in the market.