Is NMDC overvalued or undervalued?

As of 18 November 2025, the valuation grade for NMDC has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 9.47, an EV to EBITDA of 6.83, and a PEG ratio of 0.73, all suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, NMDC's PE ratio is higher than Coal India's 7.58 but significantly lower than GMDC's 26.47, which is categorized as very expensive. Additionally, NMDC's EV to EBITDA is more favorable than GMDC's 32.31, reinforcing its attractive valuation. Notably, NMDC has outperformed the Sensex over the past three years with a return of 106.72% compared to the Sensex's 37.31%, further supporting the argument for its undervaluation.