Is Salem Erode Inv. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Salem Erode Investment has moved from expensive to risky, indicating a significant shift in perception regarding its financial health. The company is currently deemed overvalued based on its negative PE ratio of -10.56 and an EV to EBITDA ratio of -50.36, which are substantial red flags. Additionally, the Return on Equity (ROE) stands at -22.76%, further highlighting the company's struggles in generating profit relative to shareholder equity.
In comparison to its peers, Salem Erode Investment's metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 35.51, and Life Insurance, boasting a PE of 11.64. The stark differences in valuation ratios suggest that Salem Erode Investment is not only underperforming but also carries a higher risk profile than its competitors. The company has underperformed the Sensex significantly, with a year-to-date return of -23.37% compared to the Sensex's 5.74%, reinforcing the conclusion that it is overvalued in the current market environment.