Is NMDC overvalued or undervalued?

As of 10 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 based on its financial metrics. Key ratios include a PE ratio of 9.22, an EV to EBITDA of 6.69, and a PEG ratio of 0.64, which suggest that while the company is not undervalued, it is also not significantly overvalued.
In comparison to peers, Coal India is rated as very attractive with a PE of 6.69, while GMDC is considered very expensive with a PE of 18.02. This places NMDC in a competitive position within the minerals and mining industry. Notably, NMDC has underperformed relative to the Sensex over the past year, with a return of -15.20% compared to the Sensex's 4.09%, reinforcing the fair valuation assessment.