Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

REC Limited (RECLTD.BO)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$1,595.88 - $4,454.22$2,478.04
Multi-Stage$1,087.04 - $1,187.26$1,136.24
Blended Fair Value$1,807.14
Current Price$372.85
Upside384.68%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS20.89%19.27%21.2610.8311.839.148.238.239.537.477.165.50
YoY Growth--96.31%-8.44%29.40%11.00%0.00%-13.64%27.58%4.36%30.17%50.77%
Dividend Yield--5.28%1.97%7.18%9.85%7.39%10.15%7.84%9.52%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)172,669.70
(-) Cash Dividends Paid (M)56,087.70
(=) Cash Retained (M)116,582.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)34,533.9421,583.7112,950.23
Cash Retained (M)116,582.00116,582.00116,582.00
(-) Cash Required (M)-34,533.94-21,583.71-12,950.23
(=) Excess Retained (M)82,048.0694,998.29103,631.77
(/) Shares Outstanding (M)2,638.562,638.562,638.56
(=) Excess Retained per Share31.1036.0039.28
LTM Dividend per Share21.2621.2621.26
(+) Excess Retained per Share31.1036.0039.28
(=) Adjusted Dividend52.3557.2660.53
WACC / Discount Rate8.96%8.96%8.96%
Growth Rate5.50%6.50%7.50%
Fair Value$1,595.88$2,478.04$4,454.22
Upside / Downside328.02%564.62%1,094.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)172,669.70183,893.23195,846.29208,576.30222,133.76236,572.45243,669.63
Payout Ratio32.48%43.99%55.49%66.99%78.50%90.00%92.50%
Projected Dividends (M)56,087.7080,887.50108,674.31139,731.65174,367.29212,915.21225,394.40

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.96%8.96%8.96%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)73,538.2974,235.3374,932.38
Year 2 PV (M)89,823.7291,534.6193,261.64
Year 3 PV (M)105,000.42108,014.60111,085.92
Year 4 PV (M)119,122.38123,703.49128,415.48
Year 5 PV (M)132,241.29138,628.60145,260.36
PV of Terminal Value (M)2,348,497.192,461,930.482,579,705.13
Equity Value (M)2,868,223.282,998,047.113,132,660.91
Shares Outstanding (M)2,638.562,638.562,638.56
Fair Value$1,087.04$1,136.24$1,187.26
Upside / Downside191.55%204.75%218.43%

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