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RDY (Dr Reddy's Laboratories) Cyclically Adjusted PB Ratio : 4.93 (As of May. 27, 2025)


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

As of today (2025-05-27), Dr Reddy's Laboratories's current share price is $14.75. Dr Reddy's Laboratories's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2025 was $2.99. Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio for today is 4.93.

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

RDY' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.25   Med: 4.85   Max: 9.04
Current: 4.79

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 4.85.

RDY's Cyclically Adjusted PB Ratio is ranked worse than
81.61% of 669 companies
in the Drug Manufacturers industry
Industry Median: 1.82 vs RDY: 4.79

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. 2025 was $4.661. 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 $2.99 for the trailing ten years ended in Mar. 2025.

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 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.41 4.60 4.39 5.24 4.41

Dr Reddy's Laboratories Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 5.24 5.27 5.39 5.42 4.41

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.


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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
=14.75/2.99
=4.93

* 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. 2025 is calculated as:

For example, Dr Reddy's Laboratories's adjusted Book Value per Share data for the three months ended in Mar. 2025 was:

Adj_Book=Book Value per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=4.661/157.5517*157.5517
=4.661

Current CPI (Mar. 2025) = 157.5517.

Dr Reddy's Laboratories Quarterly Data

Book Value per Share CPI Adj_Book
201506 2.186 99.841 3.450
201509 2.153 101.753 3.334
201512 2.268 102.901 3.473
201603 2.249 102.518 3.456
201606 2.050 105.961 3.048
201609 2.085 105.961 3.100
201612 2.154 105.196 3.226
201703 2.275 105.196 3.407
201706 2.310 107.109 3.398
201709 2.278 109.021 3.292
201712 2.321 109.404 3.342
201803 2.344 109.786 3.364
201806 2.318 111.317 3.281
201809 2.191 115.142 2.998
201812 2.310 115.142 3.161
201903 2.433 118.202 3.243
201906 2.543 120.880 3.314
201909 2.603 123.175 3.329
201912 2.521 126.235 3.146
202003 2.508 124.705 3.169
202006 2.576 127.000 3.196
202009 2.711 130.118 3.283
202012 2.773 130.889 3.338
202103 2.868 131.771 3.429
202106 2.920 134.084 3.431
202109 3.002 135.847 3.482
202112 3.029 138.161 3.454
202203 3.014 138.822 3.421
202206 3.092 142.347 3.422
202209 3.096 144.661 3.372
202212 3.216 145.763 3.476
202303 3.380 146.865 3.626
202306 3.589 150.280 3.763
202309 3.660 151.492 3.806
202312 3.864 152.924 3.981
202403 4.087 153.035 4.208
202406 4.239 155.789 4.287
202409 4.374 157.882 4.365
202412 4.488 158.323 4.466
202503 4.661 157.552 4.661

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  (NYSE:RDY) 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

Thank you for viewing the detailed overview of Dr Reddy's Laboratories's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Dr Reddy's Laboratories 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 (about 20% of its generics sales), Russia (10%), 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.