Is REC Ltd overvalued or undervalued?

Nov 14 2025 08:09 AM IST
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As of November 13, 2025, REC Ltd is fairly valued with a PE ratio of 5.48 and a PEG ratio of 0.34, making it an attractive investment compared to peers like Bajaj Finance and Life Insurance, despite a year-to-date return of -28.26% versus the Sensex's 8.11%.
As of 13 November 2025, the valuation grade for REC Ltd has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 5.48, a Price to Book Value of 1.13, and an EV to EBITDA of 10.53. These ratios suggest that REC Ltd is positioned competitively within its industry.

In comparison to its peers, REC Ltd's valuation metrics stand out, particularly against Bajaj Finance, which is deemed very expensive with a PE ratio of 34.18, and Life Insurance, classified as very attractive with an EV to EBITDA of 9.22. Notably, REC Ltd's PEG ratio of 0.34 further emphasizes its undervaluation relative to growth expectations. Despite recent underperformance compared to the Sensex, with a year-to-date return of -28.26% versus the Sensex's 8.11%, the company's solid fundamentals suggest it may be a compelling investment opportunity at its current price of 359.10.
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