Discounted Cash Flow (DCF) Analysis Unlevered
Dr. Reddy's Laboratories Limited (RDY)
$53.09
-0.74 (-1.37%)
All numbers are in Millions, Currency in USD
Operating Data
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 (%) | ||||||||||
EBITDA | 26,839 | 35,522 | 31,487 | 40,179 | 45,080 | 48,595.81 | 53,877.50 | 59,733.24 | 66,225.43 | 73,423.22 |
EBITDA (%) | ||||||||||
EBIT | 15,129 | 23,332 | 19,015 | 27,383 | 33,256 | 31,685.88 | 35,129.69 | 38,947.81 | 43,180.90 | 47,874.07 |
EBIT (%) | ||||||||||
Depreciation | 11,710 | 12,190 | 12,472 | 12,796 | 11,824 | 16,909.93 | 18,747.81 | 20,785.44 | 23,044.53 | 25,549.15 |
Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Total Cash | 20,968 | 24,757 | 25,740 | 34,573 | 44,365 | 40,176.46 | 44,543.09 | 49,384.31 | 54,751.70 | 60,702.46 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 54,767 | 50,030 | 61,754 | 61,683 | 80,270 | 83,858.46 | 92,972.72 | 103,077.58 | 114,280.69 | 126,701.42 |
Account Receivables (%) | ||||||||||
Inventories | 29,089 | 33,579 | 35,066 | 45,412 | 50,884 | 52,321.19 | 58,007.78 | 64,312.43 | 71,302.30 | 79,051.88 |
Inventories (%) | ||||||||||
Accounts Payable | 16,052 | 10,296 | 10,745 | 12,696 | 15,971 | 18,202.30 | 20,180.64 | 22,374 | 24,805.74 | 27,501.78 |
Accounts Payable (%) | ||||||||||
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 (%) |
Weighted Average Cost Of Capital
Share price | $ 53.09 |
---|---|
Beta | 0.247 |
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 | 4.697 |
Total Debt | 33,845 |
Total Equity | 8,830.72 |
Total Capital | 42,675.72 |
Debt Weighting | 79.31 |
Equity Weighting | 20.69 |
Wacc |
Build Up Free Cash
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 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 26,839 | 35,522 | 31,487 | 40,179 | 45,080 | 48,595.81 | 53,877.50 | 59,733.24 | 66,225.43 | 73,423.22 |
EBIT | 15,129 | 23,332 | 19,015 | 27,383 | 33,256 | 31,685.88 | 35,129.69 | 38,947.81 | 43,180.90 | 47,874.07 |
Tax Rate | 31.62% | 16.25% | -8.13% | 34.74% | 27.03% | 20.30% | 20.30% | 20.30% | 20.30% | 20.30% |
EBIAT | 10,344.81 | 19,539.50 | 20,560.92 | 17,871.05 | 24,267.06 | 25,252.80 | 27,997.43 | 31,040.36 | 34,414.02 | 38,154.35 |
Depreciation | 11,710 | 12,190 | 12,472 | 12,796 | 11,824 | 16,909.93 | 18,747.81 | 20,785.44 | 23,044.53 | 25,549.15 |
Accounts Receivable | - | 4,737 | -11,724 | 71 | -18,587 | -3,588.46 | -9,114.26 | -10,104.85 | -11,203.11 | -12,420.74 |
Inventories | - | -4,490 | -1,487 | -10,346 | -5,472 | -1,437.19 | -5,686.59 | -6,304.65 | -6,989.87 | -7,749.58 |
Accounts Payable | - | -5,756 | 449 | 1,951 | 3,275 | 2,231.30 | 1,978.34 | 2,193.36 | 2,431.75 | 2,696.04 |
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 |
UFCF | 11,011.81 | 18,729.50 | 14,155.92 | 9,782.06 | -3,741.94 | 24,321.30 | 17,240.24 | 19,114.01 | 21,191.44 | 23,494.66 |
WACC | ||||||||||
PV UFCF | 23,702.66 | 16,374.34 | 17,692.24 | 19,116.21 | 20,654.79 | |||||
SUM PV UFCF | 97,540.23 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 2.61 |
Free cash flow (t + 1) | 23,964.55 |
Terminal Value | 3,928,615.03 |
Present Value of Terminal Value | 3,453,751.10 |
Intrinsic Value
Enterprise Value | 3,551,291.33 |
---|---|
Net Debt | 18,993 |
Equity Value | 3,532,298.33 |
Shares Outstanding | 166.33 |
Equity Value Per Share | 21,236.06 |