Is REC Ltd overvalued or undervalued?

Nov 19 2025 08:08 AM IST
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As of November 18, 2025, REC Ltd is considered overvalued with a PE Ratio of 5.47, an EV to EBIT of 10.53, and a Dividend Yield of 5.49%, despite a low PEG Ratio of 0.34 suggesting potential undervaluation relative to growth, while it has underperformed the Sensex with a year-to-date return of -28.28%.
As of 18 November 2025, the valuation grade for REC Ltd has moved from fair to expensive. This indicates that the company is currently overvalued. Key financial ratios include a PE Ratio of 5.47, an EV to EBIT of 10.53, and a Dividend Yield of 5.49%.

In comparison to peers, REC Ltd's PE Ratio is significantly lower than that of Bajaj Finance, which stands at 34.46, and higher than Life Insurance, which has a PE of 11.34. The PEG Ratio of REC Ltd at 0.34 suggests it may be undervalued relative to its growth, but the overall valuation indicates it is overvalued compared to its peers. Additionally, REC Ltd has underperformed against the Sensex with a year-to-date return of -28.28% compared to the Sensex's 8.36%.
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