Is Old Dominion Freight Line, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Old Dominion Freight Line, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 30, an EV to EBITDA of 18.09, and a Price to Book Value of 8.00. In comparison, XPO, Inc. is considered very expensive with a P/E of 40.19 and an EV to EBITDA of 15.87, indicating that Old Dominion is more reasonably priced relative to its peer.
Despite its fair valuation, Old Dominion has underperformed against the S&P 500, with a year-to-date return of -19.28% compared to the S&P 500's 12.22%. This trend continues over one year, where Old Dominion's return is -27.63% against the S&P's 17.14%. Overall, while the valuation metrics suggest a fair position, the recent stock performance indicates potential challenges ahead.