REC
|
The Current P/E Ratio of REC is 8.82.
Share Price | ₹440.0 | Apr 24,2024 |
Market Cap | ₹115,860.8 Cr | |
Earnings-TTM | ₹13,131.7 Cr | TTM-Consolidated Results |
Price/Earnings | 8.82x | 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 [ ₹115,860.8 Cr] as on Apr 24,2024
(/) Earnings [ ₹13,131.7 Cr] based on TTM-Consolidated Results
(=) P/E Ratio [ 8.82x ]
Thus, for REC , the investors are currently willing to pay 8.82 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 | 13,131.70 | 8.82 | 115,860.8 |
INDIAN RAILWAY FINANCE CORPORATION LTD | 6,038.38 | 32.24 | 194,655.0 |
POWER FINANCE CORPORATION LTD | 25,033.40 | 5.30 | 132,697.0 |
IFCI LTD | -158.46 | -77.70 | 12,312.6 |
UJJIVAN FINANCIAL SERVICES LTD | 1,120.41 | 6.09 | 6,828.5 |
MAS FINANCIAL SERVICES LTD | 254.01 | 19.25 | 4,890.1 |
SATIN CREDITCARE NETWORK LTD | 406.32 | 6.85 | 2,785.0 |
TOURISM FINANCE CORPORATION OF INDIA LTD | 95.60 | 17.98 | 1,719.0 |
GUJARAT STATE FINANCIAL CORPORATION LTD | -120.30 | -1.88 | 226.4 |
Finance Term Lending Industry Benchmark (Top 10) PE Analysis vs REC 's P/E Ratio
Top 10 Industry Peers | PE Ratio |
---|---|
Min industry PE | -77.70x |
Max industry PE | 32.24x |
Median industry PE | 6.85x |
Average industry PE | 1.88x |
You may also like the below Video Courses