Is Covenant Logistics Group, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Covenant Logistics Group, Inc. moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears undervalued, supported by a P/E ratio of 16, an EV/EBITDA of 6.13, and a Price to Book Value of 1.36. In comparison, Universal Logistics Holdings, Inc. has a lower P/E of 11.61 and an EV/EBITDA of 5.90, while Heartland Express, Inc. shows a risky valuation with a negative P/E of -21.46.
Despite recent challenges, including a year-to-date stock return of -26.00% compared to the S&P 500's 16.30%, the long-term perspective is more favorable, with a 5-year return of 192.96% against the S&P 500's 109.18%. This suggests that while short-term performance has lagged, the overall valuation metrics indicate that Covenant Logistics Group, Inc. is positioned for potential growth.