Is CSX Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CSX Corp. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing relative to its fundamentals. The company appears to be overvalued based on its P/E ratio of 18, which is lower than the peer average of approximately 19.5, and its EV to EBITDA ratio of 11.70, which also exceeds the industry average. Additionally, the Price to Book Value stands at 4.97, suggesting that the stock is priced at a premium compared to its book value.
In comparison to its peers, Union Pacific Corp. has a P/E ratio of 34.67, while Norfolk Southern Corp. shows a P/E of 20.78, both indicating that CSX Corp. is relatively less expensive in terms of earnings but still categorized as very expensive overall. Over the past year, CSX Corp. has returned 10.61%, which lags behind the S&P 500's 14.08% return, further reinforcing the notion that the stock may not be a compelling investment at its current valuation.