Is Landstar System, Inc. overvalued or undervalued?

As of 1 November 2023, the valuation grade for Landstar System, Inc. has moved from expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 51, an EV to EBITDA of 32.57, and a Price to Book Value of 9.79. In comparison to peers, XPO, Inc. has a P/E of 31.79 and an EV to EBITDA of 14.66, while Saia, Inc. shows a P/E of 21.82 and an EV to EBITDA of 10.65, indicating that Landstar is trading at a premium relative to these competitors.
Despite a challenging year with a YTD return of -18.58% compared to the S&P 500's 2.44%, Landstar's strong ROCE of 38.85% and a high dividend yield of 137.23% suggest robust operational efficiency and shareholder returns. Overall, while the stock is currently fairly valued, its performance relative to the market and peers indicates potential for future growth if market conditions improve.