Is Martin Marietta Materials, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Martin Marietta Materials, Inc. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 30, a Price to Book Value of 3.66, and an EV to EBITDA ratio of 18.39. In comparison, peers such as Vulcan Materials Co. and Summit Materials, Inc. have P/E ratios of 38.01 and 38.54, respectively, highlighting that Martin Marietta's valuation is still lower than some competitors but remains high overall.
Despite a strong performance with a year-to-date return of 20.12% compared to the S&P 500's 12.22%, the company's long-term returns over 10 years show a decline relative to the index, with both achieving 175.46% but the S&P 500 outperforming in that timeframe. This combination of high valuation ratios and mixed performance against the benchmark suggests caution for potential investors.