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Dr Reddy's Laboratories (BOM:500124) Cyclically Adjusted Price-to-FCF : 52.04 (As of May. 23, 2024)


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What is Dr Reddy's Laboratories Cyclically Adjusted Price-to-FCF?

As of today (2024-05-23), Dr Reddy's Laboratories's current share price is ₹5892.25. Dr Reddy's Laboratories's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was ₹113.23. Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF for today is 52.04.

The historical rank and industry rank for Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BOM:500124' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 41.17   Med: 61.44   Max: 117.05
Current: 51.86

During the past years, Dr Reddy's Laboratories's highest Cyclically Adjusted Price-to-FCF was 117.05. The lowest was 41.17. And the median was 61.44.

BOM:500124's Cyclically Adjusted Price-to-FCF is ranked worse than
66.77% of 313 companies
in the Drug Manufacturers industry
Industry Median: 33.44 vs BOM:500124: 51.86

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Dr Reddy's Laboratories's adjusted free cash flow per share data for the three months ended in Mar. 2024 was ₹31.399. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is ₹113.23 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 Price-to-FCF Historical Data

The historical data trend for Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Dr Reddy's Laboratories Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.40 54.90 51.32 43.35 54.36

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 Price-to-FCF 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 43.35 48.57 47.23 50.03 54.36

Competitive Comparison of Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF falls into.



Dr Reddy's Laboratories Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

Dr Reddy's Laboratories's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=5892.25/113.23
=52.04

* 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 FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=31.399/153.0345*153.0345
=31.399

Current CPI (Mar. 2024) = 153.0345.

Dr Reddy's Laboratories Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 13.636 94.103 22.176
201409 12.273 96.780 19.407
201412 -13.111 96.780 -20.732
201503 43.973 97.163 69.259
201506 33.902 99.841 51.965
201509 45.106 101.753 67.838
201512 41.869 102.901 62.268
201603 33.291 102.518 49.695
201606 -16.137 105.961 -23.306
201609 -144.656 105.961 -208.920
201612 12.862 105.196 18.711
201703 31.135 105.196 45.294
201706 -28.516 107.109 -40.743
201709 20.503 109.021 28.780
201712 25.163 109.404 35.198
201803 24.870 109.786 34.667
201806 -45.343 111.317 -62.336
201809 52.919 115.142 70.334
201812 87.636 115.142 116.477
201903 27.154 118.202 35.156
201906 50.544 120.880 63.989
201909 53.662 123.175 66.670
201912 36.053 126.235 43.707
202003 2.702 124.705 3.316
202006 54.291 127.000 65.420
202009 39.553 130.118 46.519
202012 -3.137 130.889 -3.668
202103 48.491 131.771 56.316
202106 -40.819 134.084 -46.588
202109 -12.658 135.847 -14.260
202112 77.306 138.161 85.628
202203 30.610 138.822 33.744
202206 -12.235 142.347 -13.154
202209 35.777 144.661 37.848
202212 121.166 145.763 127.211
202303 95.701 146.865 99.721
202306 -5.531 150.280 -5.632
202309 83.903 151.492 84.757
202312 -1.829 152.924 -1.830
202403 31.399 153.035 31.399

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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 Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Dr Reddy's Laboratories Cyclically Adjusted Price-to-FCF 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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