Is United Airlines Holdings, Inc. overvalued or undervalued?

As of 10 July 2025, the valuation grade for United Airlines Holdings, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 7, an EV to EBITDA of 4.70, and a PEG ratio of 0.52, which suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, United Airlines has a lower P/E ratio than Delta Air Lines, Inc., which stands at 10.73, indicating that United may be undervalued relative to its competitor. Additionally, Southwest Airlines Co. is deemed expensive with a P/E ratio of 43.59. Despite a strong one-year return of 98.98%, which significantly outperformed the S&P 500's 17.14%, the recent weekly decline of 3.64% contrasts with the S&P 500's gain of 1.05%, suggesting some volatility in the stock's performance.