Is Salzer Electron. overvalued or undervalued?

As of 1 October 2025, the valuation grade for Salzer Electronics has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 19.71, an EV to EBITDA of 12.44, and a PEG ratio of 0.56. These ratios suggest that the stock is trading at a lower valuation compared to its earnings growth potential.
In comparison to its peers, Salzer Electronics stands out favorably. For instance, Larsen & Toubro has a much higher PE ratio of 32.56, while CG Power & Industries is deemed very expensive with a PE of 116.09. This stark contrast reinforces the notion that Salzer is undervalued within its sector. Despite recent stock performance lagging behind the Sensex, particularly in the year-to-date return of -44.62% versus the Sensex's 3.64%, the long-term perspective shows a remarkable 750.22% return over five years, highlighting its potential for recovery and growth.