Is Eagle Materials, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Eagle Materials, Inc. has moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 14, while the EV to EBITDA is 10.25, and the Price to Book Value is 4.50, indicating a reasonable valuation relative to its earnings and assets.
In comparison to its peers, Eagle Materials has a P/E ratio of 17.01, which is lower than Knife River Corp.'s 29.41 but higher than United States Lime & Minerals, Inc.'s 29.02. The company has demonstrated strong returns on equity (ROE) at 31.81% and return on capital employed (ROCE) at 22.37%, suggesting effective management of its capital. Notably, while Eagle Materials has underperformed the S&P 500 year-to-date and over the past year, it has significantly outperformed over the last three and five years, with returns of 107.25% and 155.32%, respectively.