Is Salem Erode Inv. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Salem Erode Investment has moved from risky to expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of -10.70, an EV to EBITDA of -50.96, and a ROE of -22.76%. These figures suggest that the company is struggling financially, as indicated by negative earnings and returns on equity.
In comparison to its peers, Salem Erode Investment's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 35.82, while Life Insurance boasts a much more attractive PE of 11.36. The stark contrast in these ratios highlights the overvaluation of Salem Erode Investment within its industry. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -22.33% compared to the Sensex's 4.82%, further reinforcing the notion that it is overvalued.