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, particularly when considering its P/E ratio of 7, which is significantly lower than the peer average of 8.92 for United Airlines and 10.73 for Delta Air Lines, as well as its EV to EBITDA ratio of 4.70 compared to Delta's 6.39. Additionally, the PEG ratio stands at 0.52, indicating strong growth potential relative to its valuation.
In comparison to its peers, Southwest Airlines Co. is considered expensive with a P/E ratio of 43.59, highlighting United's relative value. The company's recent stock performance has also been noteworthy, with a 1-year return of 35.20% compared to the S&P 500's 14.08%, further reinforcing the attractiveness of its valuation.