Is NMDC overvalued or undervalued?

As of 9 July 2025, NMDC's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, supported by a PE ratio of 9.12, an EV to EBITDA of 6.61, and a PEG ratio of 0.64, which suggests growth potential at a reasonable price.
In comparison with peers, Coal India, rated very attractive, has a PE of 6.75 and an EV to EBITDA of 4.47, while GMDC is considered very expensive with a PE of 18.15. NMDC's strong ROCE of 32.36% and ROE of 22.03% further reinforce its competitive standing in the minerals and mining industry. Despite recent underperformance relative to the Sensex over the past year, NMDC's long-term returns of 88.91% over three years indicate significant potential for recovery and growth.