REC
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The Current P/E Ratio of REC is 5.25.
| Share Price | ₹325.2 | Jun 02,2026 |
| Market Cap | ₹85,631.7 Cr | |
| Earnings-TTM | ₹16,308.2 Cr | TTM-Consolidated Results |
| Price/Earnings | 5.25x | Calculated as Market Cap/Earnings |
|---|---|---|
| Explore Stock Analytics | ||
Definition & Calculation of PE (Price/Earnings) ratio of REC
Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:
P/E =
Market Capitalization
/ Net Income
or, using per-share numbers:
P/E = Stock Price /
Earnings Per Share (EPS)
Current Market Cap [ ₹85,631.7 Cr] as on Jun 02,2026
(/) Earnings [ ₹16,308.2 Cr] based on TTM-Consolidated Results
(=) P/E Ratio [ 5.25x ]
P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.
Thus, for REC , the investors are currently willing to pay 5.25 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.
Thus, for REC , the investors are currently willing to pay 5.25 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 latest p/e ratio is 5.25x.
- REC 's p/e ratio for fiscal years ending Mar2025 to Mar2021 averaged 4.47x.
- REC 's operated at median p/e ratio of 2.72x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, REC 's p/e ratio peaked in Mar2024 at 8.39x.
- REC 's p/e ratio hit its five-year low in Mar2022 of 1.82x.
- REC 's p/e ratio for fiscal years ending Mar2025 to Mar2021 averaged 4.47x.
- REC 's operated at median p/e ratio of 2.72x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, REC 's p/e ratio peaked in Mar2024 at 8.39x.
- 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 | 16,308.20 | 5.25 | 85,631.7 |
| POWER FINANCE CORPORATION LTD | 33,625.40 | 4.06 | 136,360.0 |
| INDIAN RAILWAY FINANCE CORPORATION LTD | 7,009.17 | 18.03 | 126,399.0 |
| IFCI LTD | 434.71 | 44.43 | 19,315.5 |
| TOURISM FINANCE CORPORATION OF INDIA LTD | 123.46 | 28.34 | 3,498.7 |
| SATIN CREDITCARE NETWORK LTD | 332.21 | 7.69 | 2,555.8 |
Finance Term Lending Industry Benchmark (Top 10) PE Analysis vs REC 's P/E Ratio
| Top 10 Industry Peers | PE Ratio |
|---|---|
| Min industry PE | 4.06x |
| Max industry PE | 44.43x |
| Median industry PE | 18.03x |
| Average industry PE | 17.97x |
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