Is Marten Transport Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Marten Transport Ltd. has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, including a P/E ratio of 49, an EV to EBIT of 47.72, and a Price to Book Value of 1.38. In comparison, J.B. Hunt Transport Services, Inc. has a P/E of 40.85, while Knight-Swift Transportation Holdings, Inc. has a fair valuation with a P/E of 45.62, suggesting that Marten Transport is trading at a premium relative to its peers.
Recent stock performance further underscores this valuation concern, as Marten Transport has seen a year-to-date return of -30.75%, significantly underperforming the S&P 500's gain of 13.30% over the same period. This trend is consistent over longer time frames, with a 3-year return of -45.95% compared to the S&P 500's 81.19%, reinforcing the notion that the stock may not justify its current valuation.