REC LIMITED Fair Value
RECLTD · Financial Services · Current price ₹355.1
| Method | Fair value | Status |
|---|---|---|
| Excess-return (book value) | ₹415 | 20% ROE fading to 14% over ~10 yrs, on ₹323 book |
| Relative P/E | ₹1,804 | EPS × 29.1 peer-median P/E |
| Graham floor | — | Not meaningful for financials |
| Analyst target | — | No analyst coverage |
Is REC LIMITED undervalued?
DocStoX estimates the fair value of REC LIMITED at ₹794 per share, versus the current market price of ₹355. That puts the stock about +123.5% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 2 independent methods: Excess-return (book value) (₹415), Relative P/E (₹1,804). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹415 (bear) to ₹794 (base) to ₹1,804 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on REC LIMITED
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.