Is NMDC overvalued or undervalued?

As of 24 June 2025, NMDC's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 9.33, an EV to EBITDA of 6.78, and a PEG Ratio of 0.65, which suggest that while the company is generating solid returns, its valuation is now more aligned with its earnings potential.
In comparison to peers, Coal India is rated very attractive with a PE of 6.84, while GMDC is considered very expensive at a PE of 18.44. This places NMDC in a competitive position within the minerals and mining sector, though it is not the most undervalued option available. Notably, NMDC's recent stock performance has outpaced the Sensex over the past week, returning 1.24% compared to the Sensex's 0.58%, but it has underperformed over the longer term, particularly in the past year with a decline of 20.27%.