Dr. Reddy's Laboratories operates as an integrated pharmaceutical company worldwide. It operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The company was founded in 1984 and is based in Hyderabad, India.
RDY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Dr Reddys Laboratories Ltd. To summarize, we found that Dr Reddys Laboratories Ltd ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Dr Reddys Laboratories Ltd ended up being:
The company has produced more trailing twelve month cash flow than 99.03% of its sector Healthcare.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 16.45% of the free cash flow producing stocks we're observing.
RDY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 51.31% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RDY, try USNU, HZNP, THC, SUPN, and BEAT.