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. Based on the current metrics, the company appears fairly valued. 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 attractively priced relative to its peer.
Despite this fair valuation, Old Dominion has experienced significant underperformance compared to the S&P 500, with a year-to-date return of -21.75% versus the index's 13.30%. This trend continues over longer periods, with a 3-year return of -48.32% compared to the S&P 500's 81.19%, suggesting that while the stock may be fairly valued, it faces challenges that could impact future performance.