Eagle Materials Inc. (EXP) Stock Valuation — PE Analysis
Construction Materials · NYSE
Current Price
$215.25
PE Ratio (TTM)
15.9x
Intrinsic Value
$237.62
+9.4% margin of safety
COMPETITIVE MOAT
↑Regional Cement Dominance
EXP holds strong market positions in key U.S. regions, particularly in the Southwest. This allows for pricing power and logistical advantages over competitors.
↑Integrated Operations
The company's vertical integration, from quarrying aggregates to cement production, creates cost efficiencies and supply chain control. This synergy is difficult for less integrated players to replicate.
↑Essential Infrastructure Demand
Demand for EXP's core products like cement and aggregates is tied to essential infrastructure and construction projects. This provides a baseline level of demand, even during economic downturns.
INVESTMENT RISKS
↓Wallboard Market Volatility
The wallboard segment is sensitive to residential construction cycles, which can be unpredictable. Recent softness highlights this cyclical exposure.
↓Environmental Regulations
The construction materials industry faces increasing environmental scrutiny and regulations. Compliance costs and potential operational disruptions pose a risk.
↓Commodity Price Fluctuations
Input costs for raw materials and energy can fluctuate significantly, impacting profitability. While EXP has some pricing power, extreme cost increases can pressure margins.
Base case
EXP base case PE valuation
A base case PE valuation for EXP estimates a fair value of about $237.62 per share, against a current price of $215.25. The model assumes 5.7% annual earnings growth, a 16x target PE multiple, and a 10% discount rate.
Intrinsic Value
$237.62
Margin of safety
+9.4%
Expected annual return
+2.0%
Base case assumptions: 5.7% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
15.9x
PEG Ratio
n/m
Earnings Yield
6.29%
ROE (TTM)
28.3%
Revenue/Share (TTM)
$73.75
Dividend Yield
0.46%
Debt/Equity
1.22x
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 15.9x combined with a PEG ratio of -3.34 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 (15.9x) against the Construction Materials median to assess relative pricing, (2) check the PEG ratio (-3.34) 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 -3.34, calculated by dividing the PE ratio (15.9x) 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 28.3%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.