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

As of 17 October 2025, the valuation grade for Knight-Swift Transportation Holdings, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be overvalued, particularly when considering its P/E ratio of 54, which is significantly higher than the peer average of approximately 45.6. Additionally, the EV to EBITDA ratio stands at 8.41, while its PEG ratio is notably high at 4.39, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, J.B. Hunt Transport Services, Inc. has a lower P/E of 40.85 and a higher EV to EBITDA of 15.49, while Landstar System, Inc. shows a P/E of 50.79 with a much higher EV to EBITDA of 32.25. This indicates that Knight-Swift's valuation is not only higher than its direct competitors but also raises concerns about its growth prospects relative to its price. Notably, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -11.31% compared to the index's 13.30%, further reinforcing the notion that Knight-Swift may be overvalued in the current market environment.