REC Limited Stock

REC Limited EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of REC Limited (RECLTD.NS) as of Aug 16, 2026 is 4.37. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 5.57 — a change of -21.55% (lower).

EV/EBIT

4.37

YoY

-21.55%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of REC Limited is 2026 4.37 . EV/EBIT (Enterprise Value to EBIT) of REC Limited was 2025 5.57 . It decreases by -21.55% lower compared to the previous year.

The REC Limited EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2019
3.08 base
Jan 1, 2020
2.59 base
Jan 1, 2021
2.04 base
Jan 1, 2022
1.88 base
Jan 1, 2023
7.18 base
Jan 1, 2024
7.89 base
Jan 1, 2025
4.41 base
Jan 1, 2026 (e)
8.29 base
YEARPRICE-TO-EBIT
2026 est 8.29
2025 4.41
2024 7.89
2023 7.18
2022 1.88
2021 2.04
2020 2.59
2019 3.08
2018 2.72
2017 3.47
2016 3.05
2015 3.02
2014 5.08
2013 4.25
2012 6.47
2011 4.66
2010 10.30
2009 12.07
2008 4.95
2007 -
2006 -
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REC Limited Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides REC Limited's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates REC Limited's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots REC Limited's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if REC Limited grows earnings faster than its peers.

REC Limited Stock analysis

What does REC Limited do? REC Limited is a leading Indian financial institution specializing in the financing of renewable energy projects. The company was founded in 1969 and is headquartered in New Delhi, India. Its business scope includes financing, construction, and operation of renewable energy infrastructure projects in India. REC supports both the public and private sectors in financing and building infrastructure facilities. The company not only finances renewable energy but also projects in energy-saving technology, electricity transmission/distribution, and other energy projects. REC has built an impressive reputation as a financial service provider with around 50 years of experience in infrastructure project financing. The company's business model includes supporting a rapid and sustainable energy transition through joint financing of projects, aiming to meet renewable energy needs while protecting the environment. REC operates in various sectors, including renewable energy financing, construction of power transmission infrastructure, and providing energy consulting services. The company offers a range of products, from simple solar systems to large solar and wind parks. It also provides infrastructure products such as transformers, power lines, and distributors. One distinguishing aspect of REC compared to other financial institutions is its ongoing support for smaller projects. The company strives to promote startups and initiatives that contribute to improving India's energy supply. Supporting smaller projects sets the company apart as an innovator and helps diversify India's energy supply. Recently, REC has expanded its international presence by joining the International Solar Alliance (ISA). Established in 2015, ISA aims to promote the development and use of renewable energy in over 112 countries. As a member of this alliance, REC can not only expand its international presence but also benefit from applying its global experiences in India. Overall, REC Limited is a leading financial institution focusing on promoting renewable energy in India. With its emphasis on financing infrastructure projects, diversity of services, and wide range of products, REC has built an impressive reputation in the industry. REC Limited is one of the most popular companies on Eulerpool.

Frequently Asked Questions about REC Limited stock

EV/EBIT (Enterprise Value to EBIT) of REC Limited is 4.37 in 2026.

EV/EBIT (Enterprise Value to EBIT) of REC Limited changed from 5.57 to 4.37, representing a -21.55% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of EV/EBIT (Enterprise Value to EBIT) REC Limited since 2006 – with annual values, charts, and detailed analysis.

The EV/EBIT ratio measures a company's enterprise value relative to its operating earnings. It accounts for debt, making it useful for comparing companies with different capital structures.

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

To evaluate EV/EBIT (Enterprise Value to EBIT)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for EV/EBIT (Enterprise Value to EBIT).

A 'good' varies by industry and company stage. On Eulerpool, you can compare EV/EBIT (Enterprise Value to EBIT)'s REC Limited with sector peers and the industry average to assess whether it is attractive.

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Valuation — REC Limited

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