Is Arcosa, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Arcosa, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued, particularly given its P/E ratio of 40, which is notably higher than peers like CNH Industrial NV at 19.42 and BorgWarner, Inc. at 11.57. Additionally, Arcosa's EV to EBITDA ratio stands at 13.55, further emphasizing its elevated valuation compared to industry standards.
In terms of returns, Arcosa has experienced a 3-year return of 58.01%, which, while substantial, falls short of the S&P 500's 81.19% over the same period. This trend continues with a 1-year return of -3.11% compared to the S&P 500's 14.08%, suggesting that despite its strong historical performance, the stock may not justify its current high valuation in light of recent underperformance relative to the broader market.