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RECNSE:RECLTD -0.60%66 EV-to-FCF is 163.61 as of Jul. 17, 2026. GuruFocus rates NSE:RECLTD with a GF Score™ of 66/100 and a GF Value™ of ₹434.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 263 Credit Services companies, REC ranks worse than 88.97% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, REC's Enterprise Value is ₹6,051,848 Mil.
REC's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was ₹36,990 Mil. Therefore, REC's EV-to-FCF for today is 163.61.
The historical rank and industry rank for REC's EV-to-FCF or its related term are showing as below:
NSE:RECLTD'
s EV-to-FCF Range Over the Past 10 Years
Min: -91.05 Med: -10.75 Max: 163.77
Current: 163.77
During the past 13 years, the highest EV-to-FCF of REC was 163.77. The lowest was -91.05. And the median was -10.75.
NSE:RECLTD's EV-to-FCF is ranked worse than 88.97% of 263
companies
in the Credit Services industry
Industry Median: 13.68
vs NSE:RECLTD: 163.77
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
As of today (2026-07-17), REC's stock price is ₹349.60.
REC's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was ₹61.810. Therefore, REC's PE Ratio (TTM) for today is 5.66.
REC (NSE:RECLTD) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
REC's share price for today is ₹349.60.
REC's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹61.810.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
REC EV-to-FCF Related Terms
REC EV-to-FCF Historical Data
* Premium members only.
The historical data trend for REC's EV-to-FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, REC's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
REC EV-to-FCF vs Credit Services Industry
For the Credit Services industry and Financial Services sector, REC's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where REC's EV-to-FCF falls into.
REC's current Enterprise Value is ₹6,051,848 Mil.
REC's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹36,990 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
REC (NSE:RECLTD) has a EV-to-FCF of 163.61 as of Jul. 17, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on REC and its competitors. According to the industry distribution chart, REC ranks #234 out of 263 companies in the Credit Services industry, placing it in the top 89%.
Is REC's EV-to-FCF too high?
REC's current EV-to-FCF is 163.61. The Credit Services industry median EV-to-FCF is 13.68. REC's value of 163.61 is 1096% above this industry median. Based on the distribution chart, REC ranks #234 out of 263 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, REC has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REC's EV-to-FCF compare to V and MA?
According to the Credit Services industry distribution chart, REC ranks #234 out of 263 companies for EV-to-FCF. This places REC in the lower half of its industry. The industry median EV-to-FCF is 13.68. REC's value of 163.61 is 1096% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Credit Services company?
The median EV-to-FCF among Credit Services companies is 13.68, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REC's current EV-to-FCF of 163.61 is 1096% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on REC and its competitors. For the Credit Services industry, the median EV-to-FCF is 13.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REC's current EV-to-FCF is 163.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REC stock overvalued right now?
Based on GuruFocus' analysis, REC (NSE:RECLTD) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹434.75, compared to a current price of ₹349.60 — trading 19.6% below its estimated fair value. The current EV-to-FCF is 163.61 and 1096% above the Credit Services industry median of 13.68. REC's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For REC (NSE:RECLTD), the current EV-to-FCF is 163.61 as of Jul. 17, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is REC (NSE:RECLTD) Overvalued in 2026?
Based on GuruFocus' analysis, REC stock appears to be undervalued.
The current stock price of ₹349.60 is trading 19.6% below its estimated GF Value™ of ₹434.75.
GuruFocus considers REC to be Modestly Undervalued.
Key valuation signals for NSE:RECLTD:
EV-to-FCF: 163.61
GF Value™: ₹434.75 vs. price of ₹349.60 (19.6% below fair value)
Industry Position: 1096% above the Credit Services median (#234 of 263)
No single metric tells the full story. See the NSE:RECLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REC Ltd is a non-banking financial company operating in India. The company's main objective is to finance and promote power sector projects on the subcontinent. REC provides loan assistance to numerous state power utilities, private sector project developers, central power sector utilities, and state governments. REC investments include power generation, power transmission, power distribution, and other system improvement initiatives. REC is also instrumental in implementing several initiatives spearheaded on behalf of the government of India, including rural electrification. It comprises only one business segment-lending to power, logistic and infrastructure sector. The majority of its revenue derives from long-term financing.
66GF Score
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