Is Union Pacific Corp. overvalued or undervalued?

As of 30 April 2025, Union Pacific Corp. has moved from an expensive valuation grade to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 37, a Price to Book Value of 15.48, and an EV to EBITDA of 23.08, all of which are significantly higher than industry averages.
In comparison to peers, Union Pacific's P/E ratio of 36.41 is notably higher than CSX Corp.'s 18.17 and Norfolk Southern Corp.'s 18.99, indicating a premium valuation that may not be justified by growth prospects. Additionally, the PEG ratio of 5.96 suggests that the stock is priced for growth that may not materialize. Recent performance shows that while Union Pacific has outperformed the S&P 500 in the short term, it has lagged over longer periods, further supporting the notion of overvaluation.