Is Salem Erode Inv. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Salem Erode Investment has moved from risky to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of -10.14, an EV to EBITDA of -48.61, and a ROE of -22.76%. These figures indicate significant financial distress and a lack of profitability.
In comparison to its peers, Salem Erode Investment's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a PE of 11.49, both indicating a healthier financial position relative to Salem Erode. Additionally, the company's stock has underperformed compared to the Sensex, with a year-to-date return of -26.39% versus the Sensex's 7.44%, further reinforcing the notion that Salem Erode Investment is overvalued in the current market environment.