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 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 this fair valuation, Old Dominion has underperformed compared to the S&P 500, with a year-to-date return of -21.75% versus the S&P 500's 13.30%. Over the last three years, the company has seen a significant decline of -48.32%, while the S&P 500 has gained 81.19%. This stark contrast in performance reinforces the notion that while the stock may be fairly valued, it has not delivered returns in line with broader market trends.