REC
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The Current P/E Ratio of REC is 10.12.
Share Price | ₹543.8 | May 17,2024 |
Market Cap | ₹143,193.4 Cr | |
Earnings-TTM | ₹14,145.5 Cr | TTM-Consolidated Results |
Price/Earnings | 10.12x | Calculated as Market Cap/Earnings |
---|---|---|
Explore Stock Analytics |
Definition & Calculation of PE (Price/Earnings) ratio of REC
P/E =
Market Capitalization
/ Net Income
or, using per-share numbers:
P/E = Stock Price /
Earnings Per Share (EPS)
Current Market Cap [ ₹143,193.4 Cr] as on May 17,2024
(/) Earnings [ ₹14,145.5 Cr] based on TTM-Consolidated Results
(=) P/E Ratio [ 10.12x ]
Thus, for REC , the investors are currently willing to pay 10.12 times earnings to own 1 share of the company.
PE Multiples are the most widely used valuation multiple in practice.
Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.
In such cases, you may consider using Price to Book ratio or Price to Sales ratio of REC !
P/E ratios, also, would not adjust for differences in the capital structure between companies.
The chart below summarizes the trend in P/E Ratio of REC over the last five years.
Historical PE (Price/Earnings) ratio chart of REC
PE Ratio Performance Analysis for REC
- REC 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 2.69x.
- REC 's operated at median p/e ratio of 2.64x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, REC 's p/e ratio peaked in Mar2019 at 3.94x.
- REC 's p/e ratio hit its five-year low in Mar2022 of 1.82x.
How does REC 's P/E Ratio benchmark against top 10 peers in Finance Term Lending Industry?
Peer Comparison (Finance Term Lending Industry) | Earnings-TTM (Cr) | PE Ratio | Market Cap |
---|---|---|---|
REC | 14,145.50 | 10.12 | 143,193.4 |
INDIAN RAILWAY FINANCE CORPORATION LTD | 6,038.38 | 36.53 | 220,596.0 |
POWER FINANCE CORPORATION LTD | 26,461.40 | 5.84 | 154,461.0 |
IFCI LTD | 240.04 | 66.91 | 16,060.5 |
UJJIVAN FINANCIAL SERVICES LTD | 1,120.41 | 6.42 | 7,189.6 |
MAS FINANCIAL SERVICES LTD | 254.01 | 18.78 | 4,769.5 |
SATIN CREDITCARE NETWORK LTD | 435.94 | 6.08 | 2,651.3 |
TOURISM FINANCE CORPORATION OF INDIA LTD | 91.11 | 16.87 | 1,536.6 |
GUJARAT STATE FINANCIAL CORPORATION LTD | -120.30 | -1.93 | 232.3 |
Finance Term Lending Industry Benchmark (Top 10) PE Analysis vs REC 's P/E Ratio
Top 10 Industry Peers | PE Ratio |
---|---|
Min industry PE | -1.93x |
Max industry PE | 66.91x |
Median industry PE | 10.12x |
Average industry PE | 18.40x |
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