Is Salem Erode Inv. overvalued or undervalued?

Oct 12 2025 08:10 AM IST
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As of October 10, 2025, Salem Erode Investment is considered overvalued with a negative PE ratio of -10.44 and an EV to EBITDA of -49.88, significantly worse than its peers, and has underperformed the Sensex with a year-to-date return of -24.2%.
As of 10 October 2025, the valuation grade for Salem Erode Investment has moved from risky to expensive. The company is currently overvalued, as indicated by its negative PE ratio of -10.44 and EV to EBITDA ratio of -49.88, which are significantly worse than its peers. The Price to Book Value stands at 2.38, suggesting a premium valuation compared to its book value.

In comparison to its peers, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both of which highlight the relative overvaluation of Salem Erode Investment. Additionally, the company has underperformed the Sensex, with a year-to-date return of -24.2% compared to the Sensex's 5.58%. Overall, the financial metrics and peer comparisons indicate that Salem Erode Investment is not a favorable investment at its current price of 40.16.
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