Is XPO, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for XPO, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 31, which is significantly higher than its peer Old Dominion Freight Line, Inc. at 29.00. Additionally, XPO's EV to EBITDA ratio stands at 14.53, while its peer has a more favorable ratio of 17.5642, further highlighting the relative overvaluation. The PEG ratio of 0.83 suggests that the stock may not be justified at its current price given its growth prospects.
In terms of performance, XPO has shown a remarkable return of 351.10% over the past three years compared to the S&P 500's 81.19%, indicating strong historical performance despite its current overvaluation. However, the year-to-date return of -0.93% against the S&P 500's 13.30% suggests that the stock may be struggling to maintain its momentum. Overall, XPO, Inc. is currently overvalued relative to its peers and the broader market.