Is NCC overvalued or undervalued?

As of 19 May 2025, the valuation grade for NCC has moved from fair to attractive, indicating a positive shift in its investment appeal. The company is currently considered undervalued, supported by a PE ratio of 18.21, an EV to EBITDA of 7.79, and a ROCE of 23.22%. In comparison to peers, NCC's PE ratio is significantly lower than that of Larsen & Toubro, which stands at 34.21, highlighting its relative attractiveness in the market.
Additionally, while Siemens and CG Power & Ind are categorized as very expensive with PE ratios of 56.88 and 107.03 respectively, NCC's valuation appears more favorable. Despite a year-to-date return of -12.08%, the company's long-term performance of 287.32% over three years and 700.33% over five years suggests strong growth potential, reinforcing its undervalued status in the current market environment.