Is GXO Logistics, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for GXO Logistics, Inc. has moved from expensive to very expensive. This indicates that the company is currently overvalued. The P/E ratio stands at 24, while the industry average P/E is significantly lower, exemplified by Expeditors International of Washington, Inc. at 18.44 and C.H. Robinson Worldwide, Inc. at 29.31. Additionally, GXO's EV to EBITDA ratio is 9.46, which is lower than its peers, but still reflects a premium valuation compared to the industry.
In terms of key financial metrics, GXO Logistics has a Price to Book Value of 1.68 and a ROE of 7.12%. The company's performance has been relatively strong in the short term, with a 1-month stock return of 23.9% compared to the S&P 500's 3.83%, which may suggest positive market sentiment. However, given the high valuation metrics and comparison with peers, GXO Logistics is assessed as overvalued.