Is XPO, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for XPO, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. Based on the current metrics, XPO appears to be overvalued. The P/E ratio stands at 31, significantly higher than the industry average, while the EV to EBITDA ratio is 14.53, which also suggests a premium valuation compared to peers.
In comparison to its peers, J.B. Hunt Transport Services, Inc. has a P/E of 40.85, and Saia, Inc. has a more favorable P/E of 28.76, indicating that XPO's valuation is not justified relative to these competitors. Additionally, XPO's PEG ratio of 0.83 suggests that its growth prospects may not be adequately reflected in its current price. Over the past year, XPO has returned 21.28%, outperforming the S&P 500's 17.82%, but this strong performance does not negate the overvaluation indicated by the current ratios.