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 concern regarding its current pricing. The company appears to be overvalued based on key ratios such as a P/E ratio of 31, which is notably higher than its peer Old Dominion Freight Line, Inc. at 29.00, and an EV to EBITDA ratio of 24.89 compared to the industry average. Additionally, the PEG ratio stands at 0.83, suggesting that despite some growth potential, the stock may not justify its high price.
In terms of peer comparison, XPO, Inc. shows a P/E ratio of 40.19, which is considerably higher than Old Dominion's fair valuation. The company's recent performance has been mixed; while it outperformed the S&P 500 over the 3-year and 5-year periods with returns of 264.92% and 295.69%, respectively, it lagged behind in the 1-year period with a return of -8.43% compared to the S&P 500's 12.65%. This discrepancy reinforces the notion that XPO, Inc. is currently overvalued in the market.