Discounted Cash Flow

DR Reddys Laboratories Ltd. ADR

RDY · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $140.8b $12.0b $9.2b 8.5% $72.24
2018 $2.2b (-98.5%) $151.0m (-98.7%) $151.0m (-98.4%) 6.9% (-19.0%) $0.91 (-98.7%)
2019 $2.2b (2.0%) $325.0m (115.2%) $415.0m (174.8%) 14.6% (111.0%) $1.64 (80.2%)
2020 $2.3b (4.1%) $239.0m (-26.5%) $332.0m (-20.0%) 10.3% (-29.4%) $1.56 (-4.9%)
2021 $2.6b (12.0%) $361.0m (51.0%) $355.0m (6.9%) 13.9% (34.9%) $1.42 (-9.0%)
2022 $2.8b (8.9%) $426.0m (18.0%) $370.0m (4.2%) 15.1% (8.3%) $1.87 (31.7%)
2023 $3.0b (5.9%) $734.0m (72.3%) $578.0m (56.2%) 24.5% (62.7%) $3.30 (76.5%)
2024 $3.4b (12.0%) $862.0m (17.4%) $348.0m (-39.8%) 25.7% (4.9%) $4.02 (21.8%)
2025 $3.8b (13.8%) $663.0m (-23.1%) $223.0m (-35.9%) 17.4% (-32.4%) $0.79 (-80.3%)
2026 $3.6b (-6.1%) $42.9b (6363.0%) $358.0m (60.5%) 1196.9% (6780.1%) $0.55 (-30.4%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model