Is Eagle Materials, Inc. overvalued or undervalued?

As of 21 April 2025, the valuation grade for Eagle Materials, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.25, and a ROE of 31.81%.
In comparison to its peers, Eagle Materials has a P/E ratio of 13.67, which is significantly lower than Summit Materials, Inc. at 38.54, highlighting its relative valuation strength. Additionally, Eagle's EV to EBITDA ratio of 10.25 is more attractive than Summit's 13.64. Despite recent underperformance relative to the S&P 500 on a year-to-date basis, where Eagle has declined by 18.34% compared to the S&P 500's gain of 2.44%, the overall valuation metrics suggest that Eagle Materials is positioned well within its industry.