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Dr Reddy's LaboratoriesFRA:RDDA 91 EV-to-EBIT is 20.33 as of Aug. 15, 2026, which is 3% below its 10-year median of 20.98. GuruFocus rates FRA:RDDA with a GF Score™ of 91/100 and a GF Value™ of €11.95 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 682 Drug Manufacturers companies, Dr Reddy's Laboratories ranks worse than 60.85% on this metric.
Dr Reddy's Laboratories (FRA:RDDA) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Dr Reddy's Laboratories's Enterprise Value for the quarter that ended in Jun. 2026 was €10,689 Mil.
Dr Reddy's Laboratories's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €432 Mil.
* 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 EV-to-EBIT Related Terms
Dr Reddy's Laboratories EV-to-EBIT Historical Data
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's EV-to-EBIT falls into.
Dr Reddy's Laboratories's current Enterprise Value is €8,774 Mil.
Dr Reddy's Laboratories's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €432 Mil.
* 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 (FRA:RDDA) has a EV-to-EBIT of 20.33 as of Aug. 15, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Dr Reddy's Laboratories and its competitors. This is near median its historical median of 20.98. Over the past decade, Dr Reddy's Laboratories' EV-to-EBIT has ranged from 11.04 to 46.21. According to the industry distribution chart, Dr Reddy's Laboratories ranks #415 out of 682 companies in the Drug Manufacturers industry, placing it in the top 60.9%.
Is Dr Reddy's Laboratories' EV-to-EBIT too high?
Dr Reddy's Laboratories' current EV-to-EBIT of 20.33 is near median its 10-year median of 20.98. Over the past 10 years, this metric has ranged from a low of 11.04 to a high of 46.21. The Drug Manufacturers industry median EV-to-EBIT is 15.86. Dr Reddy's Laboratories' value of 20.33 is 28.2% above this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #415 out of 682 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' EV-to-EBIT compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #415 out of 682 companies for EV-to-EBIT. This places Dr Reddy's Laboratories in the lower half of its industry. The industry median EV-to-EBIT is 15.86. Dr Reddy's Laboratories' value of 20.33 is 28.2% above this benchmark. Historically, Dr Reddy's Laboratories' own EV-to-EBIT has ranged from 11.04 to 46.21 over the past decade. While the company's 10-year median is 20.98 vs. the industry median of 15.86, Dr Reddy's Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.86, based on 682 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current EV-to-EBIT of 20.33 is 28.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current EV-to-EBIT is 20.33, which is near median its own 10-year median of 20.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr Reddy's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Dr Reddy's Laboratories (FRA:RDDA) is currently considered Modestly Undervalued. The stock's GF Value™ is €11.95, compared to a current price of €10.60 — trading 11.3% below its estimated fair value. The current EV-to-EBIT is 20.33, which is near median its 10-year median of 20.98 and 28.2% above the Drug Manufacturers industry median of 15.86. Dr Reddy's Laboratories' overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current EV-to-EBIT is 20.33 as of Aug. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dr Reddy's Laboratories (FRA:RDDA) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued.
The current stock price of €10.60 is trading 11.3% below its estimated GF Value™ of €11.95.
GuruFocus considers Dr Reddy's Laboratories to be Modestly Undervalued.
Key valuation signals for FRA:RDDA:
EV-to-EBIT: 20.33 (near median its 10-year median of 20.98)
GF Value™: €11.95 vs. price of €10.60 (11.3% below fair value)
Industry Position: 28.2% above the Drug Manufacturers median (#415 of 682)
No single metric tells the full story. See the FRA:RDDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 40% of its generics sales, with other key markets being India (20%) and Europe (20%). 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.
91GF Score
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