Is Landstar System, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Landstar System, Inc. moved from very expensive to fair. The company is currently fairly valued, with a P/E ratio of 51, a Price to Book Value of 9.79, and an EV to EBITDA ratio of 32.57. In comparison, J.B. Hunt Transport Services, Inc. has a higher P/E of 40.85 and an EV to EBITDA of 15.49, while Knight-Swift Transportation Holdings, Inc. is also fairly valued with a P/E of 45.62 and a significantly lower EV to EBITDA of 8.11.
Despite the recent grade change indicating a fair valuation, Landstar's stock has underperformed against the S&P 500, with a YTD return of -24.31% compared to the S&P 500's gain of 13.30%. This trend continues over longer periods, suggesting that while the valuation metrics indicate a fair price, the stock's performance has not aligned positively with broader market trends.