Is ArcBest Corp. overvalued or undervalued?

As of 25 April 2025, the valuation grade for ArcBest Corp. has moved from attractive to very attractive, indicating a significant positive shift in its market perception. The company is currently considered undervalued, with a P/E ratio of 16, which is notably lower than its peers such as Schneider National, Inc. at 33.56 and Werner Enterprises, Inc. at 220.42. Additionally, ArcBest's EV to EBITDA ratio stands at 6.51, further highlighting its favorable valuation compared to the industry.
Key financial metrics reinforce this undervaluation narrative, with a Price to Book Value of 1.31 and a robust Dividend Yield of 51.03%. The company's ROCE is 9.12% and ROE is 8.46%, suggesting efficient capital utilization. Despite a challenging year-to-date return of -23.85% compared to the S&P 500's 2.44%, ArcBest's strong fundamentals and attractive valuation ratios make it a compelling investment opportunity.