Is XPO, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for XPO, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued, with a P/E ratio of 31, which is notably higher than its peer Old Dominion Freight Line, Inc. at 29.00. Additionally, XPO's EV to EBITDA stands at 24.89, compared to Old Dominion's 17.5642, further highlighting the disparity in valuation metrics. 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 recent performance, XPO has shown mixed returns, with a 1-year stock return of -6.51% compared to the S&P 500's 12.65%, indicating underperformance relative to the broader market. However, over a 5-year period, XPO has delivered a remarkable return of 322.46%, significantly outpacing the S&P 500's 91.73%. This long-term performance may provide some context for its current valuation, but the elevated ratios suggest caution for potential investors.