Is NTPC overvalued or undervalued?

As of 10 November 2025, NTPC's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key financial metrics, including a PE ratio of 13.30, an EV to EBITDA ratio of 10.30, and a PEG ratio of 1.75. In comparison to its peers, NTPC's valuation stands out, as Adani Power and Power Grid Corporation are both categorized as very expensive with PE ratios of 24.05 and 16.42, respectively. This suggests that while NTPC is relatively more attractive than some peers, it still does not warrant the current price level given its performance metrics. Additionally, NTPC's recent stock performance has lagged behind the Sensex, with a 1-year return of -18.09% compared to the Sensex's 5.09%, reinforcing the notion that the stock may be overvalued at this time.