Is NBCC overvalued or undervalued?

As of 5 June 2025, the valuation grade for NBCC has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE ratio of 56.38, a price-to-book value of 14.74, and an EV to EBITDA ratio of 47.18.
In comparison to its peers, NBCC's valuation stands out, as DLF has a PE ratio of 46.64 and Macrotech Developers has a PE of 54.71. These figures suggest that NBCC is trading at a premium relative to its industry counterparts. Notably, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 38.39% compared to the Sensex's 5.61%, further emphasizing the market's high expectations despite the overvaluation.