Dr Reddys Valuation
| RDDA Stock | EUR 13.20 0.10 0.75% |
At this time, the firm appears to be overvalued. Dr Reddys Laboratories owns a latest Real Value of €11.49 per share. The recent price of the firm is €13.2. Our model computes the value of Dr Reddys Laboratories from reviewing the firm fundamentals such as Current Valuation of 8.47 B, return on asset of 0.0949, and Shares Owned By Institutions of 10.37 % as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Dr Reddys' price fluctuation is not too volatile 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.
The fair value of the RDDA stock is determined by what a typical buyer is willing to pay for full or partial control of Dr Reddys Laboratories. Since Dr Reddys is currently traded on the exchange, buyers and sellers on that exchange determine the market value of RDDA 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 13.2 | Real 11.49 | Hype 13.3 | Naive 13.28 |
The real value of RDDA 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, 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, or news.
Estimating the potential upside or downside of Dr Reddys Laboratories helps investors to forecast how RDDA 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: Dr Reddys Total Value Analysis
Dr Reddys Laboratories is at this time forecasted to have takeover price of 8.47 B with market capitalization of 8.14 B, debt of 5.75 B, and cash on hands of 306.55 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Dr Reddys fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
8.47 B | 8.14 B | 5.75 B | 306.55 M |
Dr Reddys Investor Information
The book value of the company was at this time reported as 1326.14. The company has Price/Earnings To Growth (PEG) ratio of 1.5. Dr Reddys Laboratories last dividend was issued on the 1st of August 2022. The entity had 1:5 split on the 18th of August 2024. Based on the key indicators related to Dr Reddys' liquidity, profitability, solvency, and operating efficiency, Dr Reddys Laboratories is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Dr Reddys Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dr Reddys has an asset utilization ratio of 72.27 percent. This implies that the Company is making €0.72 for each dollar of assets. An increasing asset utilization means that Dr Reddys Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.Dr Reddys Ownership Allocation
Dr Reddys Laboratories secures a total of 166.1 Million outstanding shares. About 89.63 % of Dr Reddys outstanding shares are held by general public with 10.37 (percent) by institutions. Please note that no matter how many assets the company retains, if the real value of the firm is less than the current market value, you may not be able to make money on it.Dr Reddys Profitability Analysis
The company reported the revenue of 214.39 B. Net Income was 23.57 B with profit before overhead, payroll, taxes, and interest of 113.84 B.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 Dr Reddys' current worth on a weekly basis. Our valuation model uses a comparative analysis of Dr Reddys. We calculate exposure to Dr Reddys's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Dr Reddys's related companies.Reddys Laboratories Limited operates as an integrated pharmaceutical company worldwide. Reddys Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India. DR REDDYS operates under Drug Manufacturers - Specialty Generic classification in Germany and is traded on Frankfurt Stock Exchange. It employs 21966 people.
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.
Complementary Tools for RDDA 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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