Is Covenant Logistics Group, Inc. overvalued or undervalued?

As of 31 October 2025, Covenant Logistics Group, Inc. has moved from a fair to attractive valuation grade, indicating a positive shift in its perceived value. The company appears undervalued based on its current metrics, with a P/E ratio of 16, an EV to EBITDA of 6.13, and a Price to Book Value of 1.36. In comparison to peers, Universal Logistics Holdings, Inc. has a lower P/E of 11.61 and an EV to EBITDA of 5.90, while Forward Air Corp. shows a negative P/E, highlighting Covenant's relatively favorable standing in the market.
Despite its attractive valuation, Covenant has underperformed against the S&P 500 in recent periods, with a year-to-date return of -26.00% compared to the S&P 500's 16.30%. However, over the five-year period, Covenant has delivered a substantial return of 192.96%, outpacing the S&P 500's 109.18%, suggesting potential for recovery and growth moving forward.