Discounted Cash Flow (DCF) Analysis Levered

Dr. Reddy's Laboratories Limited (RDY)

$54.79

-1.50 (-2.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 33,255.96 | 54.79 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 142,028153,851174,600189,722214,391237,692.35263,526.23292,167.90323,922.52359,128.44
Revenue (%)
Operating Cash Flow 18,02928,70429,84135,70328,10838,207.2742,359.8746,963.8152,068.1357,727.21
Operating Cash Flow (%)
Capital Expenditure -11,043-7,491-6,115-12,561-19,049-15,047.08-16,682.49-18,495.64-20,505.87-22,734.57
Capital Expenditure (%)
Free Cash Flow 6,98621,21323,72623,1429,05923,160.1925,677.3828,468.1631,562.2634,992.64

Weighted Average Cost Of Capital

Share price $ 54.79
Beta 0.193
Diluted Shares Outstanding 166.33
Cost of Debt
Tax Rate 27.03
After-tax Cost of Debt 2.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.512
Total Debt 33,845
Total Equity 9,113.49
Total Capital 42,958.49
Debt Weighting 78.79
Equity Weighting 21.21
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 142,028153,851174,600189,722214,391237,692.35263,526.23292,167.90323,922.52359,128.44
Operating Cash Flow 18,02928,70429,84135,70328,10838,207.2742,359.8746,963.8152,068.1357,727.21
Capital Expenditure -11,043-7,491-6,115-12,561-19,049-15,047.08-16,682.49-18,495.64-20,505.87-22,734.57
Free Cash Flow 6,98621,21323,72623,1429,05923,160.1925,677.3828,468.1631,562.2634,992.64
WACC
PV LFCF 20,390.5422,038.1223,818.8425,743.4427,823.55
SUM PV LFCF 132,666.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.58
Free cash flow (t + 1) 35,692.49
Terminal Value 6,153,878.38
Present Value of Terminal Value 5,417,955.52

Intrinsic Value

Enterprise Value 5,550,621.66
Net Debt 18,993
Equity Value 5,531,628.66
Shares Outstanding 166.33
Equity Value Per Share 33,255.96