Valuation Metrics Indicate Attractiveness
NMDC currently trades at a price-to-earnings (PE) ratio of approximately 9.5, which is notably lower than many of its sector peers. This relatively modest PE suggests that the market is valuing NMDC’s earnings conservatively, especially when considering its strong profitability metrics. The price-to-book value stands at just over 2, indicating that the stock is priced at twice its net asset value, a reasonable figure for a capital-intensive mining company.
Enterprise value multiples further reinforce this view. The EV to EBIT and EV to EBITDA ratios are around 7.1 and 6.7 respectively, both of which are comfortably below the levels seen in several competitors. These multiples imply that NMDC’s operating earnings are being value...
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