Is Werner Enterprises, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Werner Enterprises, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, with a P/E ratio of 213, which is substantially higher than its peers, such as J.B. Hunt Transport Services, Inc. with a P/E of 40.85 and Knight-Swift Transportation Holdings, Inc. at 45.62. Additionally, the EV to EBITDA ratio stands at 58.76, further highlighting the premium at which the stock is trading compared to its industry.
In comparison to the S&P 500, Werner Enterprises has underperformed significantly over various periods, with a year-to-date return of -22.49% versus the S&P 500's 13.30%. This trend continues in the longer term, with a 5-year return of -35.21% compared to the S&P 500's impressive 91.29%. Overall, the combination of high valuation ratios and poor stock performance relative to the market suggests that Werner Enterprises, Inc. is indeed overvalued.