Is Vulcan Materials Co. overvalued or undervalued?

As of 2 May 2024, the valuation grade for Vulcan Materials Co. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 34, a Price to Book Value of 4.30, and an EV to EBITDA of 25.86, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Vulcan Materials Co. has a higher P/E ratio than Martin Marietta Materials, Inc., which stands at 29.87, and a similar EV to EBITDA ratio of 18.10. The PEG ratio for Vulcan is 4.20, which further emphasizes its overvaluation relative to industry standards. Additionally, while Vulcan's stock has shown a 1Y return of 5.34%, it still lags behind the S&P 500's 10.26% return over the same period, reinforcing the notion that the stock may not be a compelling investment at its current price.