Is Salem Erode Inv. overvalued or undervalued?

As of 15 October 2025, the valuation grade for Salem Erode Inv. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently deemed overvalued, with a PE ratio of -11.37, an EV to EBITDA ratio of -53.80, and a ROE of -22.76%. These metrics suggest that the company is struggling to generate profits and is facing significant operational challenges.
In comparison to its peers, Salem Erode Inv. shows stark contrasts; for instance, Bajaj Finance has a PE ratio of 37.84 and an EV to EBITDA of 20.12, while Life Insurance boasts a PE of 11.69 and an EV to EBITDA of 9.12, both indicating better valuation prospects. The company's recent stock performance has been underwhelming, with a year-to-date return of -17.42%, significantly lagging behind the Sensex's gain of 5.72%. This further reinforces the notion that Salem Erode Inv. is currently overvalued in the market.