REC
|
The Current P/B Ratio of REC is 2.07.
Share Price | ₹456.9 | Apr 26,2024 |
Market Cap | ₹120,297.7 Cr | |
Book Value | ₹58,120.5 Cr | Mar2023 - Consolidated Results |
Price/Book | 2.07x | Calculated as MarketCap/Book Value |
---|---|---|
Explore Stock Analytics |
Definition & Calculation of PB (Price/Book ) ratio of REC
P/B =
Market Capitalization
/ Book Value
or, using per-share numbers:
P/B = Stock Price /
Book Value Per Share
Current Market Cap [ ₹120,297.7 Cr] as on Apr 26,2024
(/) Book Value [ ₹58,120.5 Cr] based on Mar2023 - Consolidated Results
(=) P/B Ratio [ 2.07x ]
Thus, for REC , the investors are currently willing to pay '2.07 times book value' to own 1 share of the company.
PB Multiples are one of the most widely used valuation multiple in industry.
Since P/B ratio uses Book Value in the calculation, P/B multiples are not always reliable for valuing companies with negative book value.
In such cases, you may consider using Price to Earnings ratio or Price to Sales ratio of REC !
The chart below summarizes the trend in P/B Ratio of REC over the last five years.
Historical PB (Price/Book ) ratio chart of REC
PB Ratio Performance Analysis for REC
- REC 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 0.60x.
- REC 's operated at median p/b ratio of 0.53x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, REC 's p/b ratio peaked in Mar2019 at 0.87x.
- REC 's p/b ratio hit its five-year low in Mar2022 of 0.48x.
How does REC 's P/B Ratio benchmark against top 10 peers in Finance Term Lending Industry?
Peer Comparison (Finance Term Lending Industry) | Book Value | PB Ratio | Market Cap |
---|---|---|---|
REC | 58,120.50 | 2.07 | 120,297.7 |
INDIAN RAILWAY FINANCE CORPORATION LTD | 45,470.30 | 4.54 | 206,548.0 |
POWER FINANCE CORPORATION LTD | 84,158.50 | 1.59 | 134,067.0 |
IFCI LTD | 3,366.72 | 3.57 | 12,025.1 |
UJJIVAN FINANCIAL SERVICES LTD | 3,162.18 | 2.15 | 6,811.4 |
MAS FINANCIAL SERVICES LTD | 1,518.65 | 3.29 | 4,997.5 |
SATIN CREDITCARE NETWORK LTD | 1,598.85 | 1.75 | 2,802.7 |
TOURISM FINANCE CORPORATION OF INDIA LTD | 1,017.10 | 1.65 | 1,679.7 |
GUJARAT STATE FINANCIAL CORPORATION LTD | -2,813.52 | -0.08 | 231.5 |
Finance Term Lending Industry Benchmark (Top 10) PB Analysis vs REC 's P/B Ratio
Top 10 Industry Peers | PB Ratio |
---|---|
Min industry PB | -0.08x |
Max industry PB | 4.54x |
Median industry PB | 2.07x |
Average industry PB | 2.28x |
You may also like the below Video Courses