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DR REDDYS LABORATORIES
PB (Price/Book ) Ratio

The Current P/B Ratio of DR REDDYS LABORATORIES is 4.28.

Share Price ₹5,942.7Apr 19,2024
Market Cap ₹99,123.4 Cr
Book Value₹23,140.4 CrMar2023 - Consolidated Results
Price/Book 4.28xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of DR REDDYS LABORATORIES

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

P/B = Market Capitalization / Book Value

or, using per-share numbers:

P/B = Stock Price / Book Value Per Share

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

Current Market Cap [ ₹99,123.4 Cr] as on Apr 19,2024

(/) Book Value [ ₹23,140.4 Cr] based on Mar2023 - Consolidated Results

(=) P/B Ratio [ 4.28x ]

P/B Ratio indicates 'the multiple of book value' investors are willing to pay to own one share of the company.

Thus, for DR REDDYS LABORATORIES , the investors are currently willing to pay '4.28 times book value' to own 1 share of the company.

PB Multiples are one of the most widely used valuation multiple in industry.

Since P/B ratio uses Book Value in the calculation, P/B multiples are not always reliable for valuing companies with negative book value.

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

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

Historical PB (Price/Book ) ratio chart of DR REDDYS LABORATORIES


PB Ratio Performance Analysis for DR REDDYS LABORATORIES

- DR REDDYS LABORATORIES 's latest p/b ratio is 4.28x.

- DR REDDYS LABORATORIES 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 3.60x.

- DR REDDYS LABORATORIES 's operated at median p/b ratio of 3.34x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, DR REDDYS LABORATORIES 's p/b ratio peaked in Mar2021 at 4.29x.

- DR REDDYS LABORATORIES 's p/b ratio hit its five-year low in Mar2019 of 3.3x.


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

Peer Comparison (Pharmaceuticals & Drugs Industry)Book ValuePB RatioMarket Cap
DR REDDYS LABORATORIES 23,140.404.2899,123.4
SUN PHARMACEUTICAL INDUSTRIES LTD55,995.406.52365,311.0
CIPLA LTD23,346.004.65108,623.0
ZYDUS LIFESCIENCES LTD17,515.805.3092,794.9
DIVIS LABORATORIES LTD12,767.107.6397,408.4
MANKIND PHARMA LTD7,435.1612.5893,565.4
TORRENT PHARMACEUTICALS LTD6,198.0713.8585,858.5
LUPIN LTD12,315.605.7270,506.8
AUROBINDO PHARMA LTD26,839.802.3763,697.4
ABBOTT INDIA LTD3,146.0217.6555,528.4
ALKEM LABORATORIES LTD9,044.696.0955,102.7

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

Top 10 Industry PeersPB Ratio
Min industry PB 2.37x
Max industry PB 17.65x
Median industry PB 6.09x
Average industry PB 7.88x



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