Is Salem Erode Inv. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Salem Erode Investment has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently deemed overvalued. Key ratios reveal a PE ratio of -10.44, an EV to EBITDA of -49.88, and a ROE of -22.76%, all of which highlight significant financial distress.
When compared to peers, Salem Erode Investment's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a PE of 11.65, both of which suggest a more favorable valuation relative to their earnings potential. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -24.2%, contrasting sharply with the Sensex's 5.58% increase during the same period, further reinforcing the notion of overvaluation.