Is Werner Enterprises, Inc. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Werner Enterprises, Inc. has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, as evidenced by its P/E ratio of 213, which is substantially higher than peers such as Schneider National, Inc. at 33.56 and ArcBest Corp. at 16.55. Additionally, its EV to EBIT ratio stands at 58.76, further underscoring the premium being paid for its earnings relative to its competitors.
The Price to Book Value of 1.41 and an EV to Sales ratio of 0.88 suggest that while the company has some value in terms of assets, the overall valuation metrics indicate a disconnect between its market price and fundamental performance. With a return on equity (ROE) of only 0.66% and a return on capital employed (ROCE) of 2.19%, the financial performance does not justify the high valuation. Recent stock performance has also been poor, with a year-to-date return of -23.05%, contrasting sharply with the S&P 500's gain of 2.44%, reinforcing the view that the stock is overvalued.