Is NMDC overvalued or undervalued?

As of 14 August 2025, NMDC's valuation grade has moved from fair to attractive, indicating a positive shift in its market position. The company is currently assessed as undervalued, supported by a PE ratio of 9.34, an EV to EBITDA of 6.66, and a robust ROCE of 32.36%.
In comparison to its peers, NMDC's valuation stands favorably against Coal India, which has a PE of 7.15, and GMDC, which is considered very expensive at a PE of 20.3. Notably, NMDC's PEG ratio of 1.13 suggests that its growth prospects are reasonably priced relative to its earnings growth. Despite a recent decline in stock price, NMDC has outperformed the Sensex over the last three years, reflecting its strong fundamentals and growth potential in the minerals and mining industry.