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Dr Reddy's LaboratoriesBSP:R1DY34 93 EV-to-FCF is 105.61 as of Aug. 01, 2026, which is 179% above its 10-year median of 37.89. GuruFocus rates BSP:R1DY34 with a GF Score™ of 93/100 and a GF Value™ of R$14.30. The stock has 4 warning signs investors should review. Among 570 Drug Manufacturers companies, Dr Reddy's Laboratories ranks worse than 86.49% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Dr Reddy's Laboratories's Enterprise Value is R$60,147 Mil.
Dr Reddy's Laboratories's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2026 was R$570 Mil. Therefore, Dr Reddy's Laboratories's EV-to-FCF for today is 105.61.
The historical rank and industry rank for Dr Reddy's Laboratories's EV-to-FCF or its related term are showing as below:
BSP:R1DY34'
s EV-to-FCF Range Over the Past 10 Years
Min: -615.65 Med: 37.89 Max: 172.71
Current: 103.24
During the past 13 years, the highest EV-to-FCF of Dr Reddy's Laboratories was 172.71. The lowest was -615.65. And the median was 37.89.
BSP:R1DY34's EV-to-FCF is ranked worse than 86.49% of 570
companies
in the Drug Manufacturers industry
Industry Median: 20.645
vs BSP:R1DY34: 103.24
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 (BSP:R1DY34) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 R$12.10.
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 R$0.395.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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-FCF, along with its competitors' market caps and EV-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 EV-to-FCF vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's EV-to-FCF falls into.
Dr Reddy's Laboratories's current Enterprise Value is R$60,147 Mil.
Dr Reddy's Laboratories's Free Cash Flow 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 R$570 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 (BSP:R1DY34) has a EV-to-FCF of 105.61 as of Aug. 01, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Dr Reddy's Laboratories and its competitors. This is 179% above median its historical median of 37.89. According to the industry distribution chart, Dr Reddy's Laboratories ranks #493 out of 570 companies in the Drug Manufacturers industry, placing it in the top 86.5%.
Is Dr Reddy's Laboratories' EV-to-FCF too high?
Dr Reddy's Laboratories' current EV-to-FCF of 105.61 is 179% above median its 10-year median of 37.89. The Drug Manufacturers industry median EV-to-FCF is 20.65. Dr Reddy's Laboratories' value of 105.61 is 411.6% above this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #493 out of 570 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Dr Reddy's Laboratories has a GF Score™ of 93/100, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' EV-to-FCF compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #493 out of 570 companies for EV-to-FCF. This places Dr Reddy's Laboratories in the lower half of its industry. The industry median EV-to-FCF is 20.65. Dr Reddy's Laboratories' value of 105.61 is 411.6% above this benchmark. While the company's 10-year median is 37.89 vs. the industry median of 20.65, 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-FCF for a Drug Manufacturers company?
The median EV-to-FCF among Drug Manufacturers companies is 20.65, based on 570 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF 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-FCF of 105.61 is 411.6% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median EV-to-FCF is 20.65 — 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-FCF is 105.61, which is 179% above median its own 10-year median of 37.89. 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?
Dr Reddy's Laboratories (BSP:R1DY34) has a current EV-to-FCF of 105.61. The stock's GF Value™ is R$14.30, compared to a current price of R$12.10 — trading 15.4% below its estimated fair value. The current EV-to-FCF is 105.61, which is 179% above median its 10-year median of 37.89 and 411.6% above the Drug Manufacturers industry median of 20.65. Dr Reddy's Laboratories' overall GF Score™ is 93/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Dr Reddy's Laboratories (BSP:R1DY34), the current EV-to-FCF is 105.61 as of Aug. 01, 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 (BSP:R1DY34) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued.
The current stock price of R$12.10 is trading 15.4% below its estimated GF Value™ of R$14.30.
Key valuation signals for BSP:R1DY34:
EV-to-FCF: 105.61 (179% above median its 10-year median of 37.89)
GF Value™: R$14.30 vs. price of R$12.10 (15.4% below fair value)
Industry Position: 411.6% above the Drug Manufacturers median (#493 of 570)
No single metric tells the full story. See the BSP:R1DY34 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.
93GF Score
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