Is Marten Transport Ltd. overvalued or undervalued?

As of 5 September 2025, the valuation grade for Marten Transport Ltd. has moved from fair to very expensive. The company appears to be overvalued, particularly when considering its P/E ratio of 49, which is significantly higher than its peers, such as J.B. Hunt Transport Services, Inc. with a P/E of 40.85 and Knight-Swift Transportation Holdings, Inc. at 45.62. Additionally, Marten's EV to EBITDA stands at 7.73, compared to the industry average, indicating a premium valuation relative to its earnings potential.
In terms of returns, Marten Transport has underperformed significantly against the S&P 500, with a year-to-date return of -27.74% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 3-year return of -41.74% against the S&P 500's 70.41%, reinforcing the notion that the stock is not only overvalued but also struggling to deliver shareholder value relative to broader market performance.