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Dr Reddy's Laboratories (BOM:500124) Cyclically Adjusted PB Ratio : 5.02 (As of May. 23, 2024)


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What is Dr Reddy's Laboratories Cyclically Adjusted PB Ratio?

As of today (2024-05-23), Dr Reddy's Laboratories's current share price is ₹5892.25. Dr Reddy's Laboratories's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was ₹1,173.86. Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio for today is 5.02.

The historical rank and industry rank for Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio or its related term are showing as below:

BOM:500124' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.25   Med: 5.27   Max: 9.04
Current: 5

During the past years, Dr Reddy's Laboratories's highest Cyclically Adjusted PB Ratio was 9.04. The lowest was 3.25. And the median was 5.27.

BOM:500124's Cyclically Adjusted PB Ratio is ranked worse than
82.92% of 685 companies
in the Drug Manufacturers industry
Industry Median: 1.9 vs BOM:500124: 5.00

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Dr Reddy's Laboratories's adjusted book value per share data for the three months ended in Mar. 2024 was ₹1,696.700. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is ₹1,173.86 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Dr Reddy's Laboratories Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dr Reddy's Laboratories Cyclically Adjusted PB Ratio Chart

Dr Reddy's Laboratories Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.20 5.41 4.60 4.39 5.24

Dr Reddy's Laboratories Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.39 4.71 4.97 5.03 5.24

Competitive Comparison of Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio falls into.



Dr Reddy's Laboratories Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=5892.25/1173.86
=5.02

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Dr Reddy's Laboratories's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Dr Reddy's Laboratories's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1696.7/153.0345*153.0345
=1,696.700

Current CPI (Mar. 2024) = 153.0345.

Dr Reddy's Laboratories Quarterly Data

Book Value per Share CPI Adj_Book
201406 567.881 94.103 923.517
201409 581.125 96.780 918.907
201412 616.894 96.780 975.467
201503 653.254 97.163 1,028.895
201506 697.036 99.841 1,068.409
201509 712.232 101.753 1,071.180
201512 754.250 102.901 1,121.723
201603 752.227 102.518 1,122.889
201606 689.374 105.961 995.630
201609 695.572 105.961 1,004.581
201612 730.358 105.196 1,062.493
201703 748.416 105.196 1,088.763
201706 744.400 107.109 1,063.582
201709 734.511 109.021 1,031.041
201712 745.566 109.404 1,042.900
201803 762.216 109.786 1,062.475
201806 785.851 111.317 1,080.364
201809 791.743 115.142 1,052.302
201812 818.213 115.142 1,087.483
201903 845.334 118.202 1,094.441
201906 882.275 120.880 1,116.965
201909 928.006 123.175 1,152.969
201912 896.873 126.235 1,087.275
202003 934.924 124.705 1,147.312
202006 975.196 127.000 1,175.105
202009 996.690 130.118 1,172.229
202012 1,020.839 130.889 1,193.557
202103 1,044.266 131.771 1,212.781
202106 1,074.082 134.084 1,225.883
202109 1,105.343 135.847 1,245.192
202112 1,141.806 138.161 1,264.728
202203 1,148.050 138.822 1,265.588
202206 1,207.294 142.347 1,297.935
202209 1,242.185 144.661 1,314.086
202212 1,326.139 145.763 1,392.296
202303 1,390.197 146.865 1,448.600
202306 1,475.603 150.280 1,502.649
202309 1,520.164 151.492 1,535.642
202312 1,608.583 152.924 1,609.742
202403 1,696.700 153.035 1,696.700

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Dr Reddy's Laboratories  (BOM:500124) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Dr Reddy's Laboratories Cyclically Adjusted PB Ratio Related Terms

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Dr Reddy's Laboratories (BOM:500124) Business Description

Address
8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034
Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly half of its generics sales, and it services India (22% of its generics sales), Russia (12%), and certain European and Latin American countries. Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.

Dr Reddy's Laboratories (BOM:500124) Headlines

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