Discounted Cash Flow (DCF) Analysis Levered
Dr. Reddy's Laboratories Limited (RDY)
$56.66
+0.84 (+1.50%)
All numbers are in Millions, Currency in USD
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 | 142,028 | 153,851 | 174,600 | 189,722 | 214,391 | 237,692.35 | 263,526.23 | 292,167.90 | 323,922.52 | 359,128.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 18,029 | 28,704 | 29,841 | 35,703 | 28,108 | 38,207.27 | 42,359.87 | 46,963.81 | 52,068.13 | 57,727.21 |
| 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 | 6,986 | 21,213 | 23,726 | 23,142 | 9,059 | 23,160.19 | 25,677.38 | 28,468.16 | 31,562.26 | 34,992.64 |
Weighted Average Cost Of Capital
| Share price | $ 56.66 |
|---|---|
| Beta | 0.238 |
| 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 | 4.816 |
| Total Debt | 33,845 |
| Total Equity | 9,424.54 |
| Total Capital | 43,269.54 |
| Debt Weighting | 78.22 |
| Equity Weighting | 21.78 |
| 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 | 142,028 | 153,851 | 174,600 | 189,722 | 214,391 | 237,692.35 | 263,526.23 | 292,167.90 | 323,922.52 | 359,128.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 18,029 | 28,704 | 29,841 | 35,703 | 28,108 | 38,207.27 | 42,359.87 | 46,963.81 | 52,068.13 | 57,727.21 |
| 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 | 6,986 | 21,213 | 23,726 | 23,142 | 9,059 | 23,160.19 | 25,677.38 | 28,468.16 | 31,562.26 | 34,992.64 |
| WACC | ||||||||||
| PV LFCF | 22,560.09 | 24,363.98 | 26,312.11 | 28,416.01 | 30,688.13 | |||||
| SUM PV LFCF | 132,340.32 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 2.66 |
| Free cash flow (t + 1) | 35,692.49 |
| Terminal Value | 5,407,953.73 |
| Present Value of Terminal Value | 4,742,711.06 |
Intrinsic Value
| Enterprise Value | 4,875,051.38 |
|---|---|
| Net Debt | 18,993 |
| Equity Value | 4,856,058.38 |
| Shares Outstanding | 166.33 |
| Equity Value Per Share | 29,194.45 |