Is CSX Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for CSX Corp. has moved from expensive to very expensive, indicating a significant shift in perception regarding its valuation. The company is currently overvalued based on its key metrics, including a P/E ratio of 18, a Price to Book Value of 4.97, and an EV to EBITDA of 11.70. In comparison, peers such as Union Pacific Corp. have a much higher P/E of 34.67, while Norfolk Southern Corp. also reflects a higher valuation with a P/E of 20.78, suggesting that CSX is not only overvalued relative to its peers but also lacks a compelling growth narrative.
Furthermore, CSX's recent performance shows a mixed picture against the S&P 500, with a year-to-date return of 3.59% compared to the index's 12.22%, and a 1-year return of -1.82% versus 17.14% for the S&P 500. This underperformance reinforces the notion that CSX Corp. is currently overvalued in the market.