Is Union Pacific Corp. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Union Pacific Corp. has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 37, a Price to Book Value of 15.48, and an EV to EBITDA of 23.08. In comparison, peer companies such as Norfolk Southern Corp. and CSX Corp. have lower P/E ratios of 20.78 and 18.97, respectively, suggesting that Union Pacific is trading at a premium relative to its peers.
Additionally, Union Pacific's recent stock performance shows a year-to-date return of -3.37%, significantly lagging behind the S&P 500's return of 12.22% in the same period. This underperformance, coupled with its high valuation ratios, reinforces the conclusion that Union Pacific Corp. is overvalued in the current market environment.