Is Eagle Materials, Inc. overvalued or undervalued?

As of 20 May 2025, the valuation grade for Eagle Materials, Inc. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.25, and a Price to Book Value of 4.50. In comparison to peers, Knife River Corp. has a higher P/E of 29.41 and United States Lime & Minerals, Inc. shows a more attractive EV to EBITDA of 19.60, indicating that Eagle Materials is positioned more favorably within its industry.
Despite a challenging year with a stock return of -16.75% compared to the S&P 500's 17.14%, the company has shown resilience over longer periods, achieving a 175.10% return over the past five years, outperforming the S&P 500's 96.61%. This performance, coupled with its fair valuation, suggests that Eagle Materials, Inc. may present a solid investment opportunity relative to its peers.