Historical Valuation
Dr Reddy's Laboratories Ltd (RDY) is now in the Fair zone, suggesting that its current forward PE ratio of 21.52 is considered Fairly compared with the five-year average of 20.30. The fair price of Dr Reddy's Laboratories Ltd (RDY) is between 12.33 to 16.31 according to relative valuation methord.
Relative Value
Fair Zone
12.33-16.31
Current Price：13.43
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Dr Reddy's Laboratories Ltd (RDY) has a current Price-to-Book (P/B) ratio of 2.93. Compared to its 3-year average P/B ratio of 3.51 , the current P/B ratio is approximately -16.55% higher. Relative to its 5-year average P/B ratio of 3.74, the current P/B ratio is about -21.77% higher. Dr Reddy's Laboratories Ltd (RDY) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.42%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.00% , the current FCF yield is about -100.00% lower.
P/B
Median3y
3.51
Median5y
3.74
FCF Yield
Median3y
3.42
Median5y
3.00
Competitors Valuation Multiple
AI Analysis for RDY
The average P/S ratio for RDY competitors is 7.02, providing a benchmark for relative valuation. Dr Reddy's Laboratories Ltd Corp (RDY.N) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 5.41%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for RDY
1Y
3Y
5Y
Market capitalization of RDY increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of RDY in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is RDY currently overvalued or undervalued?
Dr Reddy's Laboratories Ltd (RDY) is now in the Fair zone, suggesting that its current forward PE ratio of 21.52 is considered Fairly compared with the five-year average of 20.30. The fair price of Dr Reddy's Laboratories Ltd (RDY) is between 12.33 to 16.31 according to relative valuation methord.
What is Dr Reddy's Laboratories Ltd (RDY) fair value?
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. The fair price of Dr Reddy's Laboratories Ltd (RDY) is between 12.33 to 16.31 according to relative valuation methord.
How does RDY's valuation metrics compare to the industry average?
The average P/S ratio for RDY's competitors is 7.02, providing a benchmark for relative valuation. Dr Reddy's Laboratories Ltd Corp (RDY) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 5.41%, this premium appears unsustainable.
What is the current P/B ratio for Dr Reddy's Laboratories Ltd (RDY) as of Jan 10 2026?
As of Jan 10 2026, Dr Reddy's Laboratories Ltd (RDY) has a P/B ratio of 2.93. This indicates that the market values RDY at 2.93 times its book value.
What is the current FCF Yield for Dr Reddy's Laboratories Ltd (RDY) as of Jan 10 2026?
As of Jan 10 2026, Dr Reddy's Laboratories Ltd (RDY) has a FCF Yield of 0.00%. This means that for every dollar of Dr Reddy's Laboratories Ltd’s market capitalization, the company generates 0.00 cents in free cash flow.
What is the current Forward P/E ratio for Dr Reddy's Laboratories Ltd (RDY) as of Jan 10 2026?
As of Jan 10 2026, Dr Reddy's Laboratories Ltd (RDY) has a Forward P/E ratio of 21.52. This means the market is willing to pay $21.52 for every dollar of Dr Reddy's Laboratories Ltd’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Dr Reddy's Laboratories Ltd (RDY) as of Jan 10 2026?
As of Jan 10 2026, Dr Reddy's Laboratories Ltd (RDY) has a Forward P/S ratio of 0.00. This means the market is valuing RDY at $0.00 for every dollar of expected revenue over the next 12 months.