Is GXO Logistics, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for GXO Logistics, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 24, which is notably higher than its peers, such as Maplebear, Inc. with a P/E of 22.40, and Hub Group, Inc. at 25.53. Additionally, GXO's EV to EBITDA ratio stands at 9.46, which is less favorable compared to the industry average, further supporting the overvaluation stance.
In terms of performance, GXO Logistics has shown a year-to-date return of 17.49%, outperforming the S&P 500's 12.22% during the same period. However, over the longer term, the company's 3-year return of 27.49% pales in comparison to the S&P 500's impressive 70.41%, highlighting potential concerns about its growth relative to the broader market. Overall, the combination of high valuation ratios and underwhelming long-term performance suggests GXO Logistics, Inc. is currently overvalued.