Is Salem Erode Inv. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Salem Erode Inv. has moved from expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE ratio of -10.56, an EV to EBITDA of -50.36, and a ROE of -22.76%, all of which suggest poor financial performance and profitability concerns.
In comparison to its peers, Salem Erode Inv. stands out negatively against Bajaj Finance, which has a PE ratio of 35.51, and Life Insurance, with a PE of 11.64. The stark contrast in valuation metrics highlights the challenges faced by Salem Erode Inv. in the current market environment. Furthermore, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -23.37% compared to the Sensex's 5.74%, reinforcing the notion of its overvaluation.