Is Knight-Swift Transportation Holdings, Inc. overvalued or undervalued?

As of 23 April 2025, Knight-Swift Transportation Holdings, Inc. has moved from an attractive to an expensive valuation grade. The company is currently considered overvalued based on its high P/E ratio of 54, which significantly exceeds the industry average, and a PEG ratio of 4.39, indicating that growth expectations are not justified by earnings. Additionally, the EV to EBIT ratio stands at 32.41, further suggesting that the company is trading at a premium compared to its earnings potential.
In comparison to peers, Knight-Swift's P/E ratio is notably higher than XPO, Inc. at 31.79 and Saia, Inc. at 21.82, both of which are rated as fair. The EV to EBITDA ratio for Knight-Swift is also less favorable than XPO's 14.66 and Saia's 10.65. While Knight-Swift has shown a recent positive stock return of 1.55% over the past week, it has underperformed the S&P 500 year-to-date with a decline of 16.99%. Overall, the company's valuation metrics indicate that it is overvalued in the current market environment.