Dr Reddy's Fair Value
DR
The fair market value of DRREDDY.NS stock is 8144.62 INR. Relative to the market price of 1287.35 INR Dr Reddy's is undervalued by 532.7%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Dr Reddy's Valuation
Current DRREDDY.NS share ticker price is 1287.35 INR.
The fair value level of 8144.62 INR can be considered as an effective entry point for long-term investors to start investing in DRREDDY.NS stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 533% lower its fair value
Current price is 343% lower its minimum value
Current price is 973% lower its maximum value
Market price:
DRREDDY.NS stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Dr Reddy's Laboratories Ltd Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
41.29
2
Median P/E over 5 years
24.34
3
Minimum P/E over 5 years
17.04
4
Earning per share (last 12 months)
334.59 INR
Maximum value
1
x
4
=
13 813.77 INR
Fair value
2
x
4
=
8 144.62 INR
Minimum value
3
x
4
=
5 701.87 INR
Dr Reddy's Laboratories Ltd price metrics
17.65
Annual return (geometric mean)
25.12
Risk (standard deviation) of returns
β
0.71
Beta (volatility compared to market)