Record Valuation

Is REC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of REC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REC (£0.62) is trading below our estimate of fair value (£0.96)

Significantly Below Fair Value: REC is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for REC?

Key metric: As REC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for REC. This is calculated by dividing REC's market cap by their current earnings.
What is REC's PE Ratio?
PE Ratio12.4x
EarningsUK£9.51m
Market CapUK£118.49m

Price to Earnings Ratio vs Peers

How does REC's PE Ratio compare to its peers?

The above table shows the PE ratio for REC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.2x
MGCI M&G Credit Income Investment Trust
9.5xn/aUK£139.4m
8.8xn/aUK£129.5m
PMI Premier Miton Group
40.6x67.1%UK£85.1m
CLIG City of London Investment Group
13.8x25.4%UK£190.5m
REC Record
12.4x8.2%UK£118.3m

Price-To-Earnings vs Peers: REC is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (18.2x).


Price to Earnings Ratio vs Industry

How does REC's PE Ratio compare vs other companies in the GB Capital Markets Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.2xn/aUS$35.25m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.5xn/aUS$6.47m
MAFL Mineral & Financial Investments
2.1xn/aUS$5.36m
No more companies available in this PE range
REC 12.4xIndustry Avg. 12.2xNo. of Companies19PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REC is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the UK Capital Markets industry average (12.2x).


Price to Earnings Ratio vs Fair Ratio

What is REC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: REC is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies