Is Salem Erode Inv. overvalued or undervalued?

Oct 13 2025 08:11 AM IST
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As of October 10, 2025, Salem Erode Investment is considered overvalued with a PE ratio of -10.44 and an EV to EBITDA of -49.88, significantly higher than its peers, and has underperformed the Sensex by 25.6% over the past year.
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 overvalued based on its financial ratios. Key metrics include a PE ratio of -10.44, an EV to EBITDA of -49.88, and a ROE of -22.76%.

When compared to peers, Salem Erode Investment's valuation stands out; for instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a PE ratio of 11.65, both suggesting that Salem Erode is significantly more expensive relative to its competitors. Additionally, the company's stock has underperformed against the Sensex, particularly over the year, where it has declined by 25.6% compared to a modest 1.09% increase in the index. This further reinforces the conclusion that Salem Erode Investment is overvalued in the current market context.
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