Is United States Lime & Minerals, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for United States Lime & Minerals, Inc. moved from very expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 26, an EV to EBITDA of 17.44, and a Price to Book Value of 5.91. In comparison to peers, Eagle Materials, Inc. has a P/E of 17.01 and an EV to EBITDA of 11.88, while Knife River Corp. shows a higher P/E of 29.41 but a lower EV to EBITDA of 13.91.
Despite the company’s fair valuation, its recent stock performance has been mixed, with a 1-year return of 27.03% compared to the S&P 500's 14.08%, but a significant underperformance over the 3-year and 5-year periods, where it returned 21.67% and 33.32% respectively, against the S&P 500's 81.19% and 91.29%. This suggests that while the stock may be fairly valued, it has not kept pace with broader market returns in the longer term.