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 perceived value. The company appears to be undervalued, with a PE ratio of 9.34, an EV to EBITDA of 6.66, and a PEG ratio of 1.13, which suggests that it is trading at a lower multiple compared to its earnings growth potential.
In comparison to its peers, NMDC's PE ratio is higher than Coal India's 7.15 but significantly lower than GMDC's 20.3, which is categorized as very expensive. Additionally, NMDC's EV to EBITDA ratio of 6.66 is more favorable than GMDC's 21.88, reinforcing its attractive valuation. Despite a slight decline in stock price recently, NMDC has outperformed the Sensex over the past three years, with a return of 79.93% compared to the Sensex's 35.54%, further supporting the conclusion that NMDC is currently undervalued.