RDY Valuation
Dr Reddy's Laboratories Ltd
$
14.155
- Overview
- Forecast
- Valuation
- Earnings
RDY Relative Valuation
RDY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RDY is overvalued; if below, it's undervalued.
Historical Valuation
Dr Reddy's Laboratories Ltd (RDY) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.75 is considered Undervalued compared with the five-year average of 20.93. The fair price of Dr Reddy's Laboratories Ltd (RDY) is between 15.02 to 20.65 according to relative valuation methord. Compared to the current price of 14.26 USD , Dr Reddy's Laboratories Ltd is Undervalued By 5.06%.
Relative Value
Fair Zone
15.02-20.65
Current Price：14.26
5.06%
Undervalued
18.75
PE
1Y
3Y
5Y
Trailing
Forward
12.00
EV/EBITDA
Dr Reddy's Laboratories Ltd. (RDY) has a current EV/EBITDA of 12.00. The 5-year average EV/EBITDA is 12.75. The thresholds are as follows: Strongly Undervalued below 7.77, Undervalued between 7.77 and 10.26, Fairly Valued between 15.24 and 10.26, Overvalued between 15.24 and 17.73, and Strongly Overvalued above 17.73. The current Forward EV/EBITDA of 12.00 falls within the Historic Trend Line -Fairly Valued range.
16.30
EV/EBIT
Dr Reddy's Laboratories Ltd. (RDY) has a current EV/EBIT of 16.30. The 5-year average EV/EBIT is 16.18. The thresholds are as follows: Strongly Undervalued below 8.41, Undervalued between 8.41 and 12.30, Fairly Valued between 20.06 and 12.30, Overvalued between 20.06 and 23.94, and Strongly Overvalued above 23.94. The current Forward EV/EBIT of 16.30 falls within the Historic Trend Line -Fairly Valued range.
2.94
PS
Dr Reddy's Laboratories Ltd. (RDY) has a current PS of 2.94. The 5-year average PS is 3.27. The thresholds are as follows: Strongly Undervalued below 2.46, Undervalued between 2.46 and 2.86, Fairly Valued between 3.68 and 2.86, Overvalued between 3.68 and 4.09, and Strongly Overvalued above 4.09. The current Forward PS of 2.94 falls within the Historic Trend Line -Fairly Valued range.
15.97
P/OCF
Dr Reddy's Laboratories Ltd. (RDY) has a current P/OCF of 15.97. The 5-year average P/OCF is 18.65. The thresholds are as follows: Strongly Undervalued below 10.70, Undervalued between 10.70 and 14.68, Fairly Valued between 22.62 and 14.68, Overvalued between 22.62 and 26.59, and Strongly Overvalued above 26.59. The current Forward P/OCF of 15.97 falls within the Historic Trend Line -Fairly Valued range.
22.94
P/FCF
Dr Reddy's Laboratories Ltd. (RDY) has a current P/FCF of 22.94. The 5-year average P/FCF is 29.03. The thresholds are as follows: Strongly Undervalued below 11.39, Undervalued between 11.39 and 20.21, Fairly Valued between 37.85 and 20.21, Overvalued between 37.85 and 46.68, and Strongly Overvalued above 46.68. The current Forward P/FCF of 22.94 falls within the Historic Trend Line -Fairly Valued range.
Dr Reddy's Laboratories Ltd (RDY) has a current Price-to-Book (P/B) ratio of 2.90. Compared to its 3-year average P/B ratio of 3.58 , the current P/B ratio is approximately -19.06% higher. Relative to its 5-year average P/B ratio of 3.90, the current P/B ratio is about -25.76% higher. Dr Reddy's Laboratories Ltd (RDY) has a Forward Free Cash Flow (FCF) yield of approximately 2.29%. Compared to its 3-year average FCF yield of 3.56%, the current FCF yield is approximately -35.63% lower. Relative to its 5-year average FCF yield of 3.02% , the current FCF yield is about -23.94% lower.
2.90
P/B
Median3y
3.58
Median5y
3.90
2.29
FCF Yield
Median3y
3.56
Median5y
3.02
Competitors Valuation Multiple
The average P/S ratio for RDY's competitors is 5.34, providing a benchmark for relative valuation. Dr Reddy's Laboratories Ltd Corp (RDY) exhibits a P/S ratio of 2.94, which is -45.03% above the industry average. Given its robust revenue growth of 8.58%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RDY decreased by 14.58% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 919.98M to 998.90M.
The secondary factor is the Margin Expansion, contributed -9.04%to the performance.
Overall, the performance of RDY in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
Is Dr Reddy's Laboratories Ltd (RDY) currently overvalued or undervalued?
Dr Reddy's Laboratories Ltd (RDY) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.75 is considered Undervalued compared with the five-year average of 20.93. The fair price of Dr Reddy's Laboratories Ltd (RDY) is between 15.02 to 20.65 according to relative valuation methord. Compared to the current price of 14.26 USD , Dr Reddy's Laboratories Ltd is Undervalued By 5.06% .
What is Dr Reddy's Laboratories Ltd (RDY) fair value?
How does RDY's valuation metrics compare to the industry average?
What is the current P/B ratio for Dr Reddy's Laboratories Ltd (RDY) as of Aug 14 2025?
What is the current FCF Yield for Dr Reddy's Laboratories Ltd (RDY) as of Aug 14 2025?
What is the current Forward P/E ratio for Dr Reddy's Laboratories Ltd (RDY) as of Aug 14 2025?