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

As of 10 September 2025, the valuation grade for Knight-Swift Transportation Holdings, Inc. has moved from very attractive to fair. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 54, significantly higher than the peer average of 45.62 for similar companies. Additionally, the EV to EBITDA ratio is 8.41, while its peer J.B. Hunt has a lower EV to EBITDA of 15.49, indicating a premium valuation.
In comparison to its peers, Landstar System, Inc. also shows a fair valuation with a P/E of 50.79, suggesting that Knight-Swift's valuation is not justified given its lower return metrics, such as a ROE of 1.89% and a ROCE of 3.12%. The stock has underperformed relative to the S&P 500, with a year-to-date return of -22.10% compared to the index's 12.22%, reinforcing the notion that it may be overvalued at its current price.