Is Salem Erode Inv. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Salem Erode Investment has moved from expensive to risky. The company appears to be overvalued based on its financial metrics, with a PE ratio of -10.40, an EV to EBITDA ratio of -49.71, and a ROE of -22.76%. These figures indicate significant financial distress and poor profitability.
When compared to its peers, Salem Erode Investment's valuation stands out negatively. For instance, Bajaj Finance, categorized as very expensive, has a PE ratio of 34.56, while Life Insurance, deemed very attractive, has a PE of 11.4. The stark contrast in these ratios highlights the relative overvaluation of Salem Erode Investment. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -24.5% compared to the Sensex's 4.21%, further reinforcing the notion of its overvaluation.