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Dr Reddy's LaboratoriesFRA:RDDA 91 EV-to-EBITDA is 13.91 as of Aug. 16, 2026, which is 1% below its 10-year median of 14.04. 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 735 Drug Manufacturers companies, Dr Reddy's Laboratories ranks worse than 54.69% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Dr Reddy's Laboratories's enterprise value is €8,774 Mil.
Dr Reddy's Laboratories's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was €631 Mil. Therefore, Dr Reddy's Laboratories's EV-to-EBITDA for today is 13.91.
The historical rank and industry rank for Dr Reddy's Laboratories's EV-to-EBITDA or its related term are showing as below:
FRA:RDDA'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 9.17 Med: 14.04 Max: 27.99
Current: 14.92
During the past 13 years, the highest EV-to-EBITDA of Dr Reddy's Laboratories was 27.99. The lowest was 9.17. And the median was 14.04.
FRA:RDDA's EV-to-EBITDA is ranked worse than 54.69% of 735
companies
in the Drug Manufacturers industry
Industry Median: 13.3
vs FRA:RDDA: 14.92
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
Dr Reddy's Laboratories (FRA:RDDA) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Dr Reddy's Laboratories's PE Ratio (TTM) for today is calculated as:
Dr Reddy's Laboratories's share price for today is €10.60.
Dr Reddy's Laboratories's Earnings per Share (Diluted) 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 €0.378.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
* 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-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's EV-to-EBITDA falls into.
Dr Reddy's Laboratories's current Enterprise Value is €8,774 Mil.
Dr Reddy's Laboratories's EBITDA 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 €631 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-EBITDA of 13.91 as of Aug. 16, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Dr Reddy's Laboratories. This is near median its historical median of 14.04. Over the past decade, Dr Reddy's Laboratories' EV-to-EBITDA has ranged from 9.17 to 27.99. According to the industry distribution chart, Dr Reddy's Laboratories ranks #402 out of 735 companies in the Drug Manufacturers industry, placing it in the top 54.7%.
Is Dr Reddy's Laboratories' EV-to-EBITDA too high?
Dr Reddy's Laboratories' current EV-to-EBITDA of 13.91 is near median its 10-year median of 14.04. Over the past 10 years, this metric has ranged from a low of 9.17 to a high of 27.99. The Drug Manufacturers industry median EV-to-EBITDA is 13.30. Dr Reddy's Laboratories' value of 13.91 is 4.6% above this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #402 out of 735 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-EBITDA compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #402 out of 735 companies for EV-to-EBITDA. This places Dr Reddy's Laboratories in the lower half of its industry. The industry median EV-to-EBITDA is 13.30. Dr Reddy's Laboratories' value of 13.91 is 4.6% above this benchmark. Historically, Dr Reddy's Laboratories' own EV-to-EBITDA has ranged from 9.17 to 27.99 over the past decade. While the company's 10-year median is 14.04 vs. the industry median of 13.30, 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-EBITDA for a Drug Manufacturers company?
The median EV-to-EBITDA among Drug Manufacturers companies is 13.30, based on 735 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA 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-EBITDA of 13.91 is 4.6% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Dr Reddy's Laboratories. For the Drug Manufacturers industry, the median EV-to-EBITDA is 13.30 — 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-EBITDA is 13.91, which is near median its own 10-year median of 14.04. 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-EBITDA is 13.91, which is near median its 10-year median of 14.04 and 4.6% above the Drug Manufacturers industry median of 13.30. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current EV-to-EBITDA is 13.91 as of Aug. 16, 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-EBITDA: 13.91 (near median its 10-year median of 14.04)
GF Value™: €11.95 vs. price of €10.60 (11.3% below fair value)
Industry Position: 4.6% above the Drug Manufacturers median (#402 of 735)
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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