Is NMDC overvalued or undervalued?

Jul 04 2025 08:02 AM IST
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As of July 3, 2025, NMDC is fairly valued with a PE ratio of 9.28 and an EV to EBITDA of 6.74, showing limited upside potential compared to peers like Coal India, which is very attractive, while NMDC has underperformed the Sensex with a 1-year stock return of -16.67%.
As of 3 July 2025, the valuation grade for NMDC has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a PE ratio of 9.28, an EV to EBITDA of 6.74, and a PEG ratio of 0.65, which suggest that while the company is reasonably priced, it may not present significant upside potential compared to its peers.

In comparison to its industry peers, Coal India is rated very attractive with a PE ratio of 6.74 and an EV to EBITDA of 4.46, while GMDC is considered very expensive with a PE of 18.92. NMDC's performance has lagged behind the Sensex recently, with a 1-year stock return of -16.67% compared to the Sensex's 4.07%, reinforcing the notion that NMDC is currently fairly valued in the market.
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