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$11,046.42 - $13,014.55$12,196.54
Multi-Stage$3,906.56 - $4,283.74$4,091.64
Blended Fair Value$8,144.09
Current Price$372.85
Upside2,084.28%
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 Rate4.75%4.75%4.75%
Growth Rate5.50%6.50%7.50%
Fair Value$11,046.42$12,196.54$13,014.55
Upside / Downside2,862.70%3,171.17%3,390.56%

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 Rate4.75%4.75%4.75%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)76,491.2777,216.3177,941.35
Year 2 PV (M)97,182.4599,033.50100,902.01
Year 3 PV (M)118,164.28121,556.35125,012.72
Year 4 PV (M)139,439.85144,802.32150,317.98
Year 5 PV (M)161,012.30168,789.25176,863.85
PV of Terminal Value (M)9,715,397.7210,184,655.0610,671,871.99
Equity Value (M)10,307,687.8710,796,052.7911,302,909.90
Shares Outstanding (M)2,638.562,638.562,638.56
Fair Value$3,906.56$4,091.64$4,283.74
Upside / Downside947.76%997.40%1,048.92%

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