Is NMDC overvalued or undervalued?

Nov 13 2025 08:10 AM IST
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As of November 12, 2025, NMDC's valuation grade has shifted from attractive to fair, with a PE ratio of 9.66 and an EV to EBITDA of 6.97, positioning it competitively against peers like Coal India and GMDC, while also outperforming the Sensex with a return of 105.76% over the past three years.
As of 12 November 2025, NMDC's valuation grade has moved from attractive to fair, indicating a shift in its perceived investment quality. The company is currently fairly valued based on its financial metrics, with a PE ratio of 9.66, an EV to EBITDA of 6.97, and a PEG ratio of 0.75.

In comparison with peers, Coal India is rated very attractive with a PE of 7.63 and an EV to EBITDA of 4.97, while GMDC is considered very expensive with a PE of 28.38. This positions NMDC in a competitive light, suggesting it is neither undervalued nor overvalued relative to its peers. Notably, NMDC has outperformed the Sensex over the past three years, with a return of 105.76% compared to the Sensex's 36.69%, reinforcing its strong market position despite the recent grade change.
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