Is Covenant Logistics Group, Inc. overvalued or undervalued?

As of 31 October 2025, Covenant Logistics Group, Inc. has moved from fair to attractive in its valuation grade. The company appears to be undervalued, supported by a P/E ratio of 16, an EV to 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 to EBITDA of 5.90, while Forward Air Corp. shows a negative P/E, indicating a risky valuation.
Despite recent underperformance, with a year-to-date return of -25.96% compared to the S&P 500's 16.30%, Covenant's long-term performance over five years shows a robust return of 145.20%, outpacing the S&P 500's 109.18%. This suggests that while short-term volatility exists, the company's fundamentals indicate it is currently undervalued.