REC Intrinsic Value
REC (RECLTD) median intrinsic value is ₹607.40 from 8 valuation models (range ₹222–₹730), vs current price ₹365.15 — +66.3% upside (Trading Below Calculated Value), margin of safety 39.9%. For current market price and key ratios, visit REC share price chart.
RECLTD Valuation Methods Summary — DCF, Graham Number & P/E
REC intrinsic value across 8 models vs current price ₹365.15 — upside/downside and value range per method. Analyse REC shareholding analysis to track promoter, FII and institutional holdings.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹609.12 | ₹487.30 - ₹730.94 | +66.8% | EPS: ₹50.76, Sector P/E: 12x |
| Book Value Method | asset | ₹258.42 | ₹232.58 - ₹284.26 | -29.2% | Book Value/Share: ₹323.03, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹221.54 | ₹199.39 - ₹243.69 | -39.3% | Revenue/Share: ₹221.54, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹730.30 | ₹657.27 - ₹803.33 | +100.0% | EBITDA: ₹53408.00Cr, EV/EBITDA: 5x |
| PEG Ratio Method | growth | ₹324.86 | ₹292.37 - ₹357.35 | -11.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹418.26 | ₹376.43 - ₹460.09 | +14.5% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹717.81 | ₹646.03 - ₹789.59 | +96.6% | ROE: 15.9%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹607.40 | ₹546.66 - ₹668.14 | +66.3% | EPS: ₹50.76, BVPS: ₹323.03 |
RECLTD Intrinsic Value vs Market Price — All Valuation Models
REC fair value range ₹222–₹730 vs current market price ₹365.15 across 8 valuation models. Read RECLTD dividend yield for the complete payout history and dividend yield track record.
RECLTD Intrinsic Value Analysis — Undervalued or Overvalued?
REC median intrinsic value ₹607.40, current price ₹365.15 — Trading Below Calculated Value by 66.3%, margin of safety 39.9%.
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 ₹607.40 (median value). With the current market price of ₹365.15, this represents a +66.3% variance from our estimated fair value.
The valuation range spans from ₹221.54 to ₹730.30, indicating ₹221.54 - ₹730.30.
Is RECLTD undervalued or overvalued?
Based on our multi-method analysis, REC (RECLTD) appears to be trading below calculated value by approximately 66.3%.
RECLTD Financial Health — Key Ratios vs Industry Benchmarks
REC financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| 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 | 15.9% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 92.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.09x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
RECLTD Cash Flow Quality — Operating & Free Cash Flow
REC operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| 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 |