REC Intrinsic Value

RECLTD • Financial Services
Current Stock Price
₹385.25
Primary Intrinsic Value
₹804.96
Market Cap
₹1014.4K Cr
+54.5% Upside
Median Value
₹595.34
Value Range
₹230 - ₹805
Assessment
Trading Below Calculated Value
Safety Margin
35.3%

RECLTD Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹804.96 ₹643.97 - ₹965.95 +108.9% EPS: ₹67.08, Sector P/E: 12x
Book Value Method asset ₹238.13 ₹214.32 - ₹261.94 -38.2% Book Value/Share: ₹297.67, P/B: 0.8x
Revenue Multiple Method revenue ₹230.34 ₹207.31 - ₹253.37 -40.2% Revenue/Share: ₹230.34, P/S: 1.0x
EBITDA Multiple Method earnings ₹770.50 ₹693.45 - ₹847.55 +100.0% EBITDA: ₹58744.00Cr, EV/EBITDA: 5x
PEG Ratio Method growth ₹429.31 ₹386.38 - ₹472.24 +11.4% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹552.74 ₹497.47 - ₹608.01 +43.5% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹770.50 ₹693.45 - ₹847.55 +100.0% ROE: 22.5%, P/E Multiple: 16x
Graham Defensive Method conservative ₹595.34 ₹535.81 - ₹654.87 +54.5% EPS: ₹67.08, BVPS: ₹297.67
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check RECLTD share price latest .

Valuation Comparison Chart

RECLTD Intrinsic Value Analysis

What is the intrinsic value of RECLTD?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of REC (RECLTD) is ₹595.34 (median value). With the current market price of ₹385.25, this represents a +54.5% variance from our estimated fair value.

The valuation range spans from ₹230.34 to ₹804.96, indicating ₹230.34 - ₹804.96.

Is RECLTD undervalued or overvalued?

Based on our multi-method analysis, REC (RECLTD) appears to be trading below calculated value by approximately 54.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.09 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 7.84 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 22.5% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 97.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.10x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-39,064 Cr ₹-39,715 Cr Negative Cash Flow 3/10
March 2024 ₹-57,723 Cr ₹-58,639 Cr Negative Cash Flow 3/10
March 2023 ₹-37,360 Cr ₹-37,832 Cr Negative Cash Flow 3/10
March 2022 ₹-819 Cr ₹-963 Cr Negative Cash Flow 3/10
March 2021 ₹-43,512 Cr ₹-43,512 Cr Negative Cash Flow 3/10