Dr Reddys Valuation
| RDY Stock | USD 70.91 0.40 0.56% |
At this time, the firm appears to be fairly valued. Dr Reddys Laboratories owns a latest Real Value of $71.15 per share. The recent price of the firm is $70.91. Our model computes the value of Dr Reddys Laboratories from reviewing the firm fundamentals such as Shares Owned By Institutions of 15.03 %, return on asset of 0.12, and Current Valuation of (40.82 B) as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued equities and dropping overvalued equities since, in the future, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Dr Reddys' valuation include:
Price Book 3.7037 | Enterprise Value -40.8 B | Enterprise Value Ebitda 0.1358 | Price Sales 0.0448 | Forward PE 19.5313 |
Fairly Valued
Today
Please note that Dr Reddys' price fluctuation is very steady at this time. Calculation of the real value of Dr Reddys Laboratories is based on 3 months time horizon. Increasing Dr Reddys' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Dr Reddys Laboratories is useful when determining the fair value of the RDY stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Dr Reddys. Since Dr Reddys is currently traded on the exchange, buyers and sellers on that exchange determine the market value of RDY Stock. However, Dr Reddys' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 70.91 | Real 71.15 | Target 70.11 | Hype 70.87 | Naive 69.63 |
The real value of RDY Stock, also known as its intrinsic value, is the underlying worth of Dr Reddys Laboratories Company, which is reflected in its stock price. It is based on Dr Reddys' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Dr Reddys' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Dr Reddys' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Dr Reddys Laboratories helps investors to forecast how RDY stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Dr Reddys more accurately as focusing exclusively on Dr Reddys' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Dr Reddys' intrinsic value based on its ongoing forecasts of Dr Reddys' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Dr Reddys' closest peers. When choosing an evaluation method for Dr Reddys Laboratories, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Dr Reddys Investments |
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RDY Valuation Drivers Correlation
Many accounts on the financial statements of Dr Reddys Laboratories are highly interrelated and sometimes correlated. Consequently, when conducting RDY's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of RDY
Click cells to compare fundamentals
RDY Valuation Trend
Knowing Dr Reddys' actual value is paramount for traders to make sound investment determinations. Dr Reddys' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Dr Reddys' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Dr Reddys' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
RDY Market Cap
Dr Reddys Laboratories is rated second in market capitalization category among related companies. Market capitalization of Health Care industry is at this time estimated at about 33.28 Billion. Dr Reddys totals roughly 12 Billion in market capitalization claiming about 36% of equities under Health Care industry.Dr Reddys Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Dr Reddys's current stock value. Our valuation model uses many indicators to compare Dr Reddys value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Dr Reddys competition to find correlations between indicators driving Dr Reddys's intrinsic value. More Info.Dr Reddys Laboratories is rated third in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.12 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Dr Reddys Laboratories is roughly 8.53 . Price To Book Ratio is likely to rise to 4.20 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dr Reddys by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dr Reddys' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dr Reddys' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Dr Reddys' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Dr Reddys and how it compares across the competition.
About Dr Reddys Valuation
The stock valuation mechanism determines the current worth of Dr Reddys Laboratories on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Dr Reddys Laboratories. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Dr Reddys Laboratories based exclusively on its fundamental and basic technical indicators. By analyzing Dr Reddys's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Dr Reddys's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Dr Reddys. We calculate exposure to Dr Reddys's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Dr Reddys's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 233.4 B | 245.1 B | |
| Pretax Profit Margin | 0.22 | 0.11 | |
| Operating Profit Margin | 0.35 | 0.37 | |
| Net Profit Margin | 0.21 | 0.12 | |
| Gross Profit Margin | 0.74 | 0.44 |
Dr Reddys Quarterly Retained Earnings |
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8 Steps to conduct Dr Reddys' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Dr Reddys' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Dr Reddys' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Dr Reddys' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Dr Reddys' revenue streams: Identify Dr Reddys' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Dr Reddys' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Dr Reddys' growth potential: Evaluate Dr Reddys' management, business model, and growth potential.
- Determine Dr Reddys' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Dr Reddys' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Dr Reddys represents a small ownership stake in the entity. As a stockholder of RDY, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Dr Reddys Dividends Analysis For Valuation
Please note that Dr Reddys has scaled down on payment of dividends at this time. Retained Earnings is likely to rise to about 260.3 B in 2024, whereas Earnings Yield is likely to drop 0.03 in 2024.
There are various types of dividends Dr Reddys can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of RDY shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Dr Reddys Laboratories directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When RDY pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Dr Reddys by the value of the dividends paid out.
Dr Reddys Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Dr Reddys does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 166.4 M | |
| Quarterly Earnings Growth Y O Y | 0.103 | |
| Forward Price Earnings | 19.5313 |
Dr Reddys Current Valuation Indicators
Valuation refers to the process of determining the present value of Dr Reddys Laboratories and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value RDY we look at many different elements of the entity such as RDY's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Dr Reddys' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Dr Reddys' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Dr Reddys, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Dr Reddys' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Dr Reddys' worth.When determining whether Dr Reddys Laboratories offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dr Reddys' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dr Reddys Laboratories Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dr Reddys Laboratories Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Dr Reddys Laboratories. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. Note that the Dr Reddys Laboratories information on this page should be used as a complementary analysis to other Dr Reddys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Complementary Tools for RDY Stock analysis
When running Dr Reddys' price analysis, check to measure Dr Reddys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dr Reddys is operating at the current time. Most of Dr Reddys' value examination focuses on studying past and present price action to predict the probability of Dr Reddys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dr Reddys' price. Additionally, you may evaluate how the addition of Dr Reddys to your portfolios can decrease your overall portfolio volatility.
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Is Dr Reddys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dr Reddys. If investors know RDY will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dr Reddys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.103 | Dividend Share 40 | Earnings Share 3.75 | Revenue Per Share 272.4618 | Quarterly Revenue Growth 0.066 |
The market value of Dr Reddys Laboratories is measured differently than its book value, which is the value of RDY that is recorded on the company's balance sheet. Investors also form their own opinion of Dr Reddys' value that differs from its market value or its book value, called intrinsic value, which is Dr Reddys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dr Reddys' market value can be influenced by many factors that don't directly affect Dr Reddys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dr Reddys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dr Reddys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dr Reddys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.