Is Salem Erode Inv. overvalued or undervalued?

Oct 19 2025 08:08 AM IST
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As of October 17, 2025, Salem Erode Inv. is considered overvalued with a valuation grade shift to expensive, reflected by a negative PE ratio of -10.14, an EV to EBITDA of -48.61, and a year-to-date stock return of -26.39%, significantly underperforming compared to peers and the Sensex.
As of 17 October 2025, the valuation grade for Salem Erode Inv. has moved from risky to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios reveal a PE ratio of -10.14, an EV to EBITDA of -48.61, and a ROE of -22.76%, all of which suggest significant financial distress and inefficiency.

In comparison to peers, Salem Erode Inv. stands out unfavorably against companies like Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, with a PE of 11.49. The stark contrast in valuation metrics highlights the challenges faced by Salem Erode Inv. in the current market landscape. Furthermore, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -26.39% compared to the Sensex's gain of 7.44%, reinforcing the notion of overvaluation amidst declining investor confidence.
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