Is Volato Group, Inc. overvalued or undervalued?

As of 10 February 2023, the valuation grade for Volato Group, Inc. has moved from does not qualify to risky, indicating increased concerns about its financial health. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of -4.46, which is significantly below the industry average, and an EV to EBITDA ratio of 2.11, suggesting it is not generating sufficient earnings relative to its valuation. Additionally, the PEG ratio is not applicable, further complicating the valuation picture.
In comparison to its peers, Volato Group, Inc. stands out negatively, as its P/E ratio is lower than many competitors in the airline industry, indicating a lack of investor confidence. Notably, the stock has underperformed against the S&P 500, with a year-to-date return of -73.88% compared to the S&P's 12.22%, reinforcing the notion that the stock is not only overvalued but also struggling in the current market environment.