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 analysis, the company appears to be fairly valued. Key valuation 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, peers such as Knife River Corp. have a P/E of 29.41 and an EV to EBITDA of 13.91, while United States Lime & Minerals, Inc. shows a P/E of 29.02 and an EV to EBITDA of 19.60, indicating that Eagle Materials is relatively more attractively priced within its industry.
In terms of recent performance, Eagle Materials has outperformed the S&P 500 over the past week and month, with returns of 3.91% and 3.14%, respectively, compared to the S&P 500's 1.70% and 0.96%. However, the company has lagged over the longer term, with a year-to-date return of -3.86% versus the S&P 500's 13.30%. Overall, while the recent returns show some strength, the longer-term performance suggests caution for investors.