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. 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, Eagle Materials has a lower P/E ratio than Knife River Corp. at 29.41 and United States Lime & Minerals, Inc. at 29.02, indicating a more attractive valuation relative to these companies.
Despite a year-to-date return of -3.86%, which underperformed the S&P 500's 13.30%, Eagle Materials has shown strong performance over longer periods, with a 3-year return of 107.25% compared to the S&P 500's 81.19%. This suggests that while the stock may be facing short-term challenges, its long-term growth potential remains robust.