Volatility is a statistical measure of the dispersion of returns for a given security or market index, it shows how the price swings around its mean. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year. In most cases, the higher the volatility, the riskier the security.
Salem Erode Investments (BOM:540181) Volatility Explanation
Volatility is a statistical measure of the dispersion of returns for a given security or market index. It’s often measured as standard deviation or variance of historical returns over a certain period. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year.
Volatility reflects the uncertainty or risk of a security’s value. Generally speaking, a higher volatility suggests a higher risk, because it implies a wider fluctuation around average price. This means the price of the security can change dramatically in either direction within a short period. Conversely, a lower volatility means that the security's price is more steady, which suggests a lower risk.
Another measurement of relative volatility is Beta. Beta is a measure of systematic risk of a security or a portfolio in comparison to the market as a whole. Beta is usually compared to 1. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Salem Erode Investments Volatility Related Terms
BOM:540181 vs V, MA, AXP: Volatility Comparison
For the Credit Services subindustry, Salem Erode Investments's Volatility, along with its competitors' market caps and Volatility data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Salem Erode Investments Volatility vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Salem Erode Investments's Volatility distribution charts can be found below:
* The bar in red indicates where Salem Erode Investments's Volatility falls into.
Salem Erode Investments (BOM:540181) Volatility Calculation
The annualized volatility is calculated as following:
σA
=
σM
*
√12
=
√ 1/(n-1) ∑(Ri - R')^2
*
√12
Where: σM is the monthly volatility, n is the number of months in the period, Ri is the security's historical monthly returns and R' is the arithmetic mean of monthly returns.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Salem Erode Investments (BOM:540181) has a Volatility of 39.68% as of Jul. 08, 2026. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Salem Erode Investments and its competitors.
Is Salem Erode Investments' Volatility too high?
Salem Erode Investments' current Volatility is 39.68%. Overall, Salem Erode Investments has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Salem Erode Investments' Volatility compare to V and MA?
Salem Erode Investments' Volatility of 39.68% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Volatility for a Credit Services company?
A good Volatility depends on the Credit Services industry context. However, Volatility should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Volatility mean?
A high Volatility can signal that a stock is expensive relative to its fundamentals. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Salem Erode Investments and its competitors. Salem Erode Investments's current Volatility is 39.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salem Erode Investments stock overvalued right now?
Based on GuruFocus' analysis, Salem Erode Investments (BOM:540181) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹42.51, compared to a current price of ₹37.08 — trading 12.8% below its estimated fair value. The current Volatility is 39.68%. Salem Erode Investments' overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Volatility calculated?
Volatility is calculated from a company's financial statements. For Salem Erode Investments (BOM:540181), the current Volatility is 39.68% as of Jul. 08, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Salem Erode Investments (BOM:540181) Overvalued in 2026?
Based on GuruFocus' analysis, Salem Erode Investments stock appears to be undervalued.
The current stock price of ₹37.08 is trading 12.8% below its estimated GF Value™ of ₹42.51.
GuruFocus considers Salem Erode Investments to be Modestly Undervalued.
Key valuation signals for BOM:540181:
Volatility: 39.68%
GF Value™: ₹42.51 vs. price of ₹37.08 (12.8% below fair value)
No single metric tells the full story. See the BOM:540181 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salem Erode Investments Ltd is engaged in the lending and investment business in India. It is a finance company that helps to secure the future financially and helps in the financial crisis. The company invests in listed and unlisted equity shares, debt instruments of companies in a wide range of industries, and mutual funds. It also lends money with or without security. The company generates revenue from interest income and dividends.
70GF Score
Get the complete analysis for BOM:540181
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