NMDC Group PJSC Valuation

Is NMDC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NMDC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NMDC (AED25.64) is trading below our estimate of fair value (AED31.33)

Significantly Below Fair Value: NMDC is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for NMDC?

Other financial metrics that can be useful for relative valuation.

NMDC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA6.5x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does NMDC's PE Ratio compare to its peers?

The above table shows the PE ratio for NMDC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.2x
OC Orascom Construction
5x1.7%US$628.4m
DSI Drake and Scull International P.J.S.C
0.3xn/aد.إ1.0b
MODON Modon Holding PSC
6.5xn/aد.إ58.7b
DIC Dubai Investments PJSC
9x-2.1%د.إ8.6b
NMDC NMDC Group PJSC
7.7x2.8%د.إ21.2b

Price-To-Earnings vs Peers: NMDC is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (5.2x).


Price to Earnings Ratio vs Industry

How does NMDC's PE Ratio compare vs other companies in the Asian Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NMDC is good value based on its Price-To-Earnings Ratio (7.7x) compared to the Asian Construction industry average (15.9x).


Price to Earnings Ratio vs Fair Ratio

What is NMDC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NMDC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio9.7x

Price-To-Earnings vs Fair Ratio: NMDC is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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