Is XPO, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for XPO, Inc. has moved from very expensive to expensive. Despite this slight improvement, the company remains overvalued based on its current metrics. The P/E ratio stands at 31, significantly higher than the peer Old Dominion Freight Line, Inc., which has a P/E of 29.00. Additionally, XPO's EV to EBITDA ratio is 14.53, while its PEG ratio is notably low at 0.83, indicating potential growth at a reasonable price compared to its earnings growth.
In comparison to its peers, XPO, Inc. is positioned unfavorably, with a higher valuation than Old Dominion Freight Line, which is considered fairly valued. While XPO has shown impressive returns over the long term, with a 3-year return of 351.10% compared to the S&P 500's 81.19%, its year-to-date performance of -0.93% against the S&P 500's 13.30% suggests that the stock may be struggling to justify its current valuation.