Is NMDC overvalued or undervalued?

As of 1 July 2025, NMDC's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 9.14, an EV to EBITDA of 6.62, and a PEG ratio of 0.64, all of which suggest that NMDC is trading at a discount relative to its earnings growth potential.
In comparison to peers, NMDC's PE ratio is notably higher than Coal India's 6.79, which is rated as very attractive, while it is significantly lower than GMDC's 19.48, which is categorized as very expensive. This peer analysis reinforces the conclusion that NMDC is undervalued within its industry. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 18.13% compared to the Sensex's 5.31% gain, the company's strong fundamentals and attractive valuation metrics position it favorably for potential investors.