Is CSX Corp. overvalued or undervalued?

As of 3 April 2025, the valuation grade for CSX Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 18, an EV to EBITDA of 11.70, and a Price to Book Value of 4.97. In comparison, Union Pacific Corp. has a much higher P/E ratio of 36.41, while Norfolk Southern Corp. is slightly lower at 18.99, highlighting the premium CSX is trading at relative to its peers.
Despite a recent stock performance that lags behind the S&P 500 over the past year, with a return of -2.96% compared to the index's 10.26%, CSX's valuation metrics suggest that investors are paying a high price for its earnings potential. Given these factors, CSX Corp. appears to be overvalued in the current market environment.