Is NBCC overvalued or undervalued?

As of 10 June 2025, the valuation grade for NBCC has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. Key ratios include a PE ratio of 55.08, an EV to EBITDA of 45.90, and a PEG ratio of 3.71, all of which suggest that the stock is trading at a premium compared to its earnings and growth potential.
In comparison to peers, NBCC's PE ratio is significantly higher than DLF's 45.96 and Macrotech Development's 52.95, both of which are categorized as very expensive. This further reinforces the notion that NBCC is overvalued in its sector. Additionally, while the company's stock has outperformed the Sensex over various periods, including a 34.40% YTD return versus the Sensex's 5.44%, the high valuation ratios indicate that investors should exercise caution.