Is United Airlines Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for United Airlines Holdings, Inc. has moved from attractive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 7, an EV to EBITDA of 4.70, and a PEG ratio of 0.52. In comparison, Delta Air Lines, Inc. has a P/E of 10.73, while Southwest Airlines Co. is considered expensive with a P/E of 43.59, highlighting United's relative value within the industry.
Despite a recent decline in monthly returns of -6.04% compared to the S&P 500's 0.96%, United Airlines has shown strong performance over longer periods, with a 1-year return of 35.20% versus the S&P 500's 14.08% and a remarkable 3-year return of 174.63% compared to 81.19% for the index. This performance reinforces the narrative that United Airlines is currently undervalued relative to its peers and the broader market.