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DR REDDYS LABORATORIES
PE (Price/Earnings) Ratio

The Current P/E Ratio of DR REDDYS LABORATORIES is 17.39.

Share Price ₹5,799.3May 17,2024
Market Cap ₹96,731.5 Cr
Earnings-TTM₹5,563.2 CrTTM-Consolidated Results
Price/Earnings17.39xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of DR REDDYS LABORATORIES

Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of DR REDDYS LABORATORIES is calculated as :

Current Market Cap [ ₹96,731.5 Cr] as on May 17,2024

(/) Earnings [ ₹5,563.2 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 17.39x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for DR REDDYS LABORATORIES , the investors are currently willing to pay 17.39 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of DR REDDYS LABORATORIES !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of DR REDDYS LABORATORIES over the last five years.

Historical PE (Price/Earnings) ratio chart of DR REDDYS LABORATORIES


PE Ratio Performance Analysis for DR REDDYS LABORATORIES

- DR REDDYS LABORATORIES 's latest p/e ratio is 17.39x.

- DR REDDYS LABORATORIES 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 27.52x.

- DR REDDYS LABORATORIES 's operated at median p/e ratio of 25.57x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, DR REDDYS LABORATORIES 's p/e ratio peaked in Mar2021 at 38.5x.

- DR REDDYS LABORATORIES 's p/e ratio hit its five-year low in Mar2023 of 17.08x.


How does DR REDDYS LABORATORIES 's P/E Ratio benchmark against top 10 peers in Pharmaceuticals & Drugs Industry?

Peer Comparison (Pharmaceuticals & Drugs Industry)Earnings-TTM (Cr)PE RatioMarket Cap
DR REDDYS LABORATORIES 5,563.2017.3996,731.5
SUN PHARMACEUTICAL INDUSTRIES LTD8,998.6340.84367,470.0
CIPLA LTD4,155.3127.19112,990.0
ZYDUS LIFESCIENCES LTD3,831.4027.63105,846.0
DIVIS LABORATORIES LTD1,382.9775.09103,849.0
MANKIND PHARMA LTD1,926.5543.5483,873.0
TORRENT PHARMACEUTICALS LTD1,494.0061.1391,321.0
LUPIN LTD1,935.5738.9175,312.7
AUROBINDO PHARMA LTD2,777.8924.5568,194.5
ABBOTT INDIA LTD1,201.2246.8656,289.8
ALKEM LABORATORIES LTD1,574.6641.3165,046.4

Pharmaceuticals & Drugs Industry Benchmark (Top 10) PE Analysis vs DR REDDYS LABORATORIES 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 17.39x
Max industry PE 75.09x
Median industry PE 40.84x
Average industry PE 40.40x



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