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

As of 17 October 2025, the valuation grade for Old Dominion Freight Line, Inc. moved from very expensive to fair. The company is currently fairly valued based on its financial 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, its peer XPO, Inc. has a much higher P/E ratio of 40.19, indicating that Old Dominion may be a more attractive option within the transport services industry.
Despite its fair valuation, Old Dominion has underperformed against the S&P 500, with a year-to-date return of -21.75% compared to the S&P 500's 13.30%. Over the past three years, the stock has declined by 48.32% while the S&P 500 has gained 81.19%, reinforcing the notion that the stock may be undervalued relative to its recent performance.