Eagle Materials Inc. (EXP) Stock Valuation — PE Analysis
Construction Materials · NYSE
Current Price
$185.12
PE Ratio (TTM)
14.6x
Intrinsic Value
$185.72
+0.3% margin of safety
COMPETITIVE MOAT
↑Regional Cement Market Dominance
EXP holds strong positions in key regional cement markets, benefiting from high transportation costs for competitors. This creates a natural barrier to entry and allows for pricing power.
↑Integrated Operations and Scale
The company's integrated model, from quarrying to cement production and distribution, provides cost efficiencies. Its scale allows for better absorption of fixed costs.
↑Long-Term Customer Relationships
EXP has established durable relationships with construction companies and contractors. These relationships are built on reliability and consistent product quality, fostering customer loyalty.
INVESTMENT RISKS
↓Cyclical Construction Demand
EXP's performance is heavily tied to the cyclical nature of the construction industry. Downturns in new construction or infrastructure projects can significantly impact sales.
↓Environmental Regulations
The cement industry faces stringent environmental regulations, particularly concerning emissions. Compliance can lead to increased capital expenditures and operational costs.
↓Competition from Alternative Materials
While cement is a staple, the development and adoption of alternative building materials could pose a long-term threat to demand.
Base case
EXP base case PE valuation
At a current price of $185.12, the base case PE valuation puts EXP fair value near $185.72 per share. That figure assumes 2.9% yearly earnings growth, a target PE multiple of 14.23x, and a 10% discount rate.
Intrinsic Value
$185.72
Margin of safety
+0.3%
Expected annual return
+0.1%
Base case assumptions: 2.9% annual earnings growth, 14.23x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EXP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Eagle Materials Inc. respond.
Open PE Calculator for EXPCompany Overview
Eagle Materials Inc., operating through its subsidiaries across the United States, stands as a key producer and supplier of both heavy construction and light building materials. The company's diverse operations are organized into distinct segments: Cement; Concrete and Aggregates; Gypsum Wallboard; and Recycled Paperboard. Its core activities involve the mining of limestone for the comprehensive manufacture, distribution, and sale of Portland cement, alongside the grinding and distribution of slag. Additionally, Eagle Materials extracts gypsum to produce and market gypsum wallboard, an essential product utilized for finishing interior walls and ceilings in residential, commercial, and industrial structures. The firm also engages in the production and sale of recycled paperboard, catering to the gypsum wallboard industry and other paperboard converters, while also providing containerboard and lightweight packaging grades. Furthermore, its product portfolio includes ready-mix concrete, complemented by the mining, extraction, and sale of various aggregates such as crushed stone, sand, and gravel. These fundamental materials are integral to a broad spectrum of projects, ranging from residential and commercial building construction to public infrastructure developments and the critical construction, expansion, and repair of roads and highways. Established in 1963, the company was initially known as Centex Construction Products, Inc. before rebranding to Eagle Materials Inc. in January 2004. Its corporate headquarters are located in Dallas, Texas.
Financial Metrics — EXP PE Stock Valuation Data
PE Ratio (TTM)
14.6x
PEG Ratio
n/m
Earnings Yield
7.03%
ROE (TTM)
26.9%
Revenue/Share (TTM)
$75.15
Dividend Yield
0.54%
Debt/Equity
1.21x
Frequently Asked Questions
What is the PE ratio of EXP?
The trailing twelve-month PE ratio of EXP reflects how much investors pay per dollar of Eagle Materials Inc.'s earnings. This metric is most useful when compared to Construction Materials peers and the company's own historical range.
Is EXP overvalued based on PE ratio?
EXP's PE of 14.6x combined with a PEG ratio of -2.09 provides a growth-adjusted perspective. EXP has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Construction Materials, a DCF analysis may be more appropriate.
How do I value EXP stock using PE ratio?
To value Eagle Materials Inc. using PE: (1) Compare the current PE (14.6x) against the Construction Materials median to assess relative pricing, (2) check the PEG ratio (-2.09) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of EXP?
EXP's PEG ratio is -2.09, calculated by dividing the PE ratio (14.6x) by the expected earnings growth rate. Because EXP has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EXP stock valuation?
PE ratio gives a quick relative read — how EXP is priced versus Construction Materials peers. DCF provides an absolute value based on projected free cash flows. For EXP, with a strong ROE of 26.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See EXP DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value EXP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.