Is NMDC overvalued or undervalued?

As of 15 July 2025, NMDC's valuation grade has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued, with a PE ratio of 9.14, an EV to EBITDA ratio of 6.62, and a PEG ratio of 0.64, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, NMDC's valuation appears favorable; for instance, Coal India has a PE ratio of 6.74, while GMDC is significantly more expensive at a PE of 17.69. Additionally, NMDC's robust ROCE of 32.36% and ROE of 22.03% further reinforce its attractiveness in the minerals and mining sector. Despite a recent decline in stock price relative to the Sensex, NMDC's long-term performance over three and five years shows strong returns of 106.30% and 151.79%, respectively, highlighting its potential for future growth.