REC Intrinsic Value
RECLTD • Financial Services
Current Stock Price
₹329.35
Primary Intrinsic Value
₹804.96
Market Cap
₹867.2K Cr
+80.8%
Upside
Median Value
₹595.34
Value Range
₹230 - ₹805
Assessment
Trading Below Calculated Value
Safety Margin
44.7%
RECLTD Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹804.96 | ₹643.97 - ₹965.95 | +144.4% | EPS: ₹67.08, Sector P/E: 12x |
| Book Value Method | asset | ₹238.13 | ₹214.32 - ₹261.94 | -27.7% | Book Value/Share: ₹297.67, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹230.34 | ₹207.31 - ₹253.37 | -30.1% | Revenue/Share: ₹230.34, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹658.70 | ₹592.83 - ₹724.57 | +100.0% | EBITDA: ₹58744.00Cr, EV/EBITDA: 5x |
| PEG Ratio Method | growth | ₹429.31 | ₹386.38 - ₹472.24 | +30.4% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹552.74 | ₹497.47 - ₹608.01 | +67.8% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹658.70 | ₹592.83 - ₹724.57 | +100.0% | ROE: 22.5%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹595.34 | ₹535.81 - ₹654.87 | +80.8% | EPS: ₹67.08, BVPS: ₹297.67 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
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 ₹329.35, this represents a +80.8% 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 80.8%.
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 |
| 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 |
Related Pages for REC
Additional stock information and data for RECLTD
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 |