Dr. Reddy's Laboratories
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$13.72
FAIR PRICE
$14.80
MARGIN
$1.08
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FPI RATING
Low debt levels, but expensive valuation relative to fundamentals and volatile earnings pattern.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$11.84
Fair price × 0.80
DISTANCE
13.7%
Price to entry level
At the current price of $13.72, RDY trades 13.7% above the conservative entry level of $11.84. This entry level represents a 20% margin of safety below the calculated fair price of $14.80 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate RDY's fair price
Dr. Reddy's Laboratories's fair price of $14.80 is derived from a blended model that combines DCF analysis (50%), relative valuation against Healthcare peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $13.72, RDY trades 7.8% below its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting RDY's risk profile.
RELATIVE · 30%
Comparing RDY's valuation multiples against Healthcare peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for RDY, weighted by recency and analyst accuracy.
TRY IT YOURSELF
Want to test your own assumptions? Use our free calculators to estimate RDY's fair value with your own inputs.
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Explore on BuliosFAQ
What is the fair price of RDY?+
Based on our blended model combining DCF analysis (50%), relative valuation against Healthcare peers (30%), and analyst consensus (20%), the fair price for Dr. Reddy's Laboratories is $14.80. At the current market price of $13.72, RDY trades 7.8% below its calculated fair value.
Is RDY overvalued or undervalued?+
Dr. Reddy's Laboratories is currently fair based on our valuation model. The stock trades at $13.72, which is 7.8% below the fair price of $14.80. The P/E ratio of 19.5x is a key metric in the valuation.
What is the margin of safety for RDY?+
With a 20% margin of safety applied to the fair price of $14.80, the conservative entry level for RDY is $11.84. At the current market price of $13.72, the stock trades 13.7% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is RDY's fair price updated?+
We update fair price calculations for RDY daily after market close. The current fair price of $14.80 incorporates the latest market data and sector multiples.
What factors affect RDY's fair price calculation?+
RDY's fair price of $14.80 is derived from DCF analysis (50% weight), relative valuation against Healthcare peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 19.5x, ROE of 16.7%, and dividend yield of 0.65%.
Is RDY a good buy right now?+
At $13.72, RDY trades 7.8% below our fair value estimate of $14.80. The stock is currently fair. ROE stands at 16.7% (strong). Fair Price Index provides valuation data — always do your own research before investing.
Does RDY pay dividends?+
RDY has a dividend yield of 0.65%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.