Like you, I"m bullish about AA. But my confidence stems from its solid business model and belief that AA is going to be around for a long time. I disagree this is a stock for short-term speculators because the best way to realize the benefits from a growing company is to hold it for medium to long term. Needless to say that the stock is pretty volatile, so it's not for the faint-hearted. In terms of EPS and P/E, I believe the valuation for many analysts for such airlines is based on non-GAAP earnings which excludes items like deferred taxes, forex gains/losses and other exceptional items. Hence, the P/E of 5 you have is technically correct but not one that many analysts would use when comparing other such airline companies. So at this moment in time, this stock probably isn't under-valued as you are suggesting.

Some recent interesting developments on Airasia. Just sharing, not a buy or sell recommendation from me.

29 January: US-based fund Wellington Management Co bought 12.56 million AirAsia Bhd shares from Jan 18 to 21.
22 January: AmResearch company update research report, target price of 2.00

One of the few truly world-class Msian companies that is able to compete (and do well!) internationally. Why not go long on this one?