Dr. Reddy's Laboratories Limited (RDY) P/E Ratio History
ExpensiveTrading at 21.8x vs 5Y avg 0.1x · 100th percentile · Material premium to history · Data 2002–2027
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P/E Ratio Analysis
As of October 3, 2026, Dr. Reddy's Laboratories Limited (RDY) trades at a price-to-earnings ratio of 21.8x, with a stock price of $12.25 and trailing twelve-month earnings per share of $39.83.
The current P/E is 14778% above its 5-year average of 0.1x. Over the past five years, RDY's P/E has ranged from a low of 0.0x to a high of 0.4x, placing the current valuation at the 100th percentile of its historical range.
Compared to the Healthcare sector median P/E of 23.2x, RDY is roughly in line with its sector peers. The sector includes 225 companies with P/E ratios ranging from 0.0x to 197.5x.
The PEG ratio of 1.03 (P/E divided by -20% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, RDY trades roughly in line with the S&P 500 median P/E of 24.6x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our RDY DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
RDY Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
RDY P/E vs Peers
Large-scale generic drug manufacturers peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $10B | 20.4Lowest | 1.14 | -39% | |
| $6B | 91.2 | - | +158% | |
| $46B | 32.8 | - | +183% | |
| $107B | 23.4 | - | +49% | |
| $54B | 31.8 | - | +325%Best | |
| $109B | 61.3 | - | -62% | |
| $43B | 33.3 | 0.82Best | +5% | |
| $160B | 20.7 | - | -4% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
RDY Historical P/E Data (2002–2027)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2027 Q1 | - | $14.49 | $39.80 | 0.4x | +130% |
| FY2026 Q4 | - | $13.85 | $51.47 | 0.3x | +70% |
| FY2026 Q3 | Dec 31 2025 | $14.04 | $67.89 | 0.2x | +31% |
| FY2026 Q2 | - | $13.98 | $70.31 | 0.2x | +26% |
| FY2026 Q1 | Jun 30 2025 | $15.03 | $68.11 | 0.2x | +39% |
| FY2025 Q4 | Mar 31 2025 | $13.19 | $67.78 | 0.2x | +23% |
| FY2025 Q3 | - | $15.79 | $64.35 | 0.2x | +55% |
| FY2025 Q2 | Sep 30 2024 | $15.89 | $63.95 | 0.2x | +57% |
| FY2025 Q1 | Jun 30 2024 | $15.24 | $66.66 | 0.2x | +44% |
| FY2024 Q4 | Mar 31 2024 | $14.67 | $134.19 | 0.1x | -31% |
| FY2024 Q3 | Dec 31 2023 | $13.92 | $176.12 | 0.1x | -50% |
| FY2024 Q2 | Sep 30 2023 | $13.37 | $234.53 | 0.1x | -64% |
| FY2024 Q1 | Jun 30 2023 | $12.62 | $283.66 | 0.0x | -72% |
| FY2023 Q4 | Mar 31 2023 | $11.39 | $270.84 | 0.0x | -73% |
| FY2023 Q3 | Dec 31 2022 | $10.35 | $218.50 | 0.0x | -70% |
| FY2023 Q2 | Sep 30 2022 | $10.47 | $186.03 | 0.1x | -64% |
| FY2023 Q1 | - | $11.08 | $178.79 | 0.1x | -61% |
| FY2022 Q4 | - | $11.15 | $141.73 | 0.1x | -50% |
| FY2022 Q3 | Dec 31 2021 | $13.08 | $169.76 | 0.1x | -51% |
| FY2022 Q2 | - | $13.03 | $128.47 | 0.1x | -36% |
| FY2022 Q1 | Jun 30 2021 | $14.70 | $114.65 | 0.1x | -19% |
| FY2021 Q4 | Mar 31 2021 | $12.28 | $115.17 | 0.1x | -33% |
| FY2021 Q3 | - | $14.26 | $127.89 | 0.1x | -30% |
| FY2021 Q2 | Sep 30 2020 | $13.91 | $92.33 | 0.2x | -5% |
| FY2021 Q1 | - | $10.60 | $112.32 | 0.1x | -40% |
| FY2020 Q4 | - | $8.07 | $117.37 | 0.1x | -57% |
| FY2020 Q3 | - | $8.12 | $97.52 | 0.1x | -47% |
| FY2020 Q2 | Sep 30 2019 | $7.58 | $161.10 | 0.0x | -70% |
| FY2020 Q1 | Jun 30 2019 | $7.49 | $125.59 | 0.1x | -62% |
| FY2019 Q4 | Mar 31 2019 | $8.10 | $113.13 | 0.1x | -55% |
| FY2019 Q3 | Dec 31 2018 | $7.54 | $105.15 | 0.1x | -55% |
| FY2019 Q2 | Sep 30 2018 | $6.92 | $96.07 | 0.1x | -55% |
| FY2019 Q1 | Jun 30 2018 | $6.44 | $82.91 | 0.1x | -51% |
| FY2018 Q4 | Mar 31 2018 | $6.54 | $59.02 | 0.1x | -30% |
| FY2018 Q3 | Dec 31 2017 | $7.51 | $59.67 | 0.1x | -21% |
| FY2018 Q2 | Sep 30 2017 | $7.14 | $67.86 | 0.1x | -34% |
| FY2018 Q1 | Jun 30 2017 | $8.43 | $68.47 | 0.1x | -22% |
| FY2017 Q4 | Mar 31 2017 | $8.03 | $72.34 | 0.1x | -30% |
| FY2017 Q3 | Dec 31 2016 | $9.06 | $57.88 | 0.2x | -1% |
| FY2017 Q2 | Sep 30 2016 | $9.28 | $63.42 | 0.1x | -8% |
| FY2017 Q1 | - | $10.25 | $87.86 | 0.1x | -26% |
| FY2016 Q4 | - | $9.04 | $117.01 | 0.1x | -51% |
| FY2016 Q3 | - | $9.26 | $142.99 | 0.1x | -59% |
| FY2016 Q2 | Sep 30 2015 | $12.78 | $142.74 | 0.1x | -43% |
| FY2016 Q1 | - | $11.06 | $134.14 | 0.1x | -48% |
| FY2015 Q4 | - | $11.42 | $129.80 | 0.1x | -44% |
| FY2015 Q3 | Dec 31 2014 | $10.09 | $127.67 | 0.1x | -50% |
| FY2015 Q2 | - | $10.51 | $130.31 | 0.1x | -49% |
| FY2015 Q1 | Jun 30 2014 | $8.63 | $137.18 | 0.1x | -60% |
| FY2014 Q4 | Mar 31 2014 | $8.78 | $126.11 | 0.1x | -56% |
| FY2014 Q3 | - | $8.21 | $131.40 | 0.1x | -61% |
| FY2014 Q2 | Sep 30 2013 | $7.56 | $117.35 | 0.1x | -59% |
| FY2014 Q1 | Jun 30 2013 | $7.56 | $99.94 | 0.1x | -52% |
| FY2013 Q4 | Mar 31 2013 | $6.47 | $98.51 | 0.1x | -59% |
| FY2013 Q3 | Dec 31 2012 | $6.66 | $80.49 | 0.1x | -48% |
| FY2013 Q2 | Sep 30 2012 | $6.17 | $88.45 | 0.1x | -56% |
| FY2013 Q1 | Jun 30 2012 | $5.94 | $83.49 | 0.1x | -55% |
| FY2012 Q4 | Mar 31 2012 | $6.91 | $79.20 | 0.1x | -45% |
| FY2012 Q3 | Feb 06 2012 | $6.77 | $83.87 | 0.1x | -49% |
| FY2012 Q2 | Sep 30 2011 | $5.96 | $69.78 | 0.1x | -46% |
| FY2012 Q1 | - | $6.87 | $68.56 | 0.1x | -37% |
| FY2011 Q4 | - | $7.46 | $65.45 | 0.1x | -28% |
| FY2011 Q3 | Dec 31 2010 | $7.39 | $55.33 | 0.1x | -16% |
| FY2011 Q2 | - | $6.44 | $8.35 | 0.8x | +387% |
| FY2011 Q1 | Jun 30 2010 | $6.17 | $4.29 | 1.4x | +808% |
| FY2010 Q4 | Mar 31 2010 | $5.65 | $6.40 | 0.9x | +457% |
| FY2009 Q3 | Dec 31 2008 | $1.96 | $33.50 | 0.1x | -63% |
| FY2009 Q2 | - | $2.23 | $13.99 | 0.2x | +1% |
| FY2009 Q1 | Jun 30 2008 | $3.12 | $21.05 | 0.1x | -6% |
| FY2008 Q4 | Mar 31 2008 | $2.90 | $23.93 | 0.1x | -24% |
| FY2008 Q3 | Dec 31 2007 | $3.63 | $37.39 | 0.1x | -39% |
| FY2008 Q2 | Sep 30 2007 | $3.27 | $54.17 | 0.1x | -62% |
| FY2008 Q1 | Jun 30 2007 | $3.23 | $58.97 | 0.1x | -65% |
| FY2007 Q4 | Mar 31 2007 | $3.29 | $58.68 | 0.1x | -65% |
| FY2007 Q3 | Dec 31 2006 | $3.64 | $37.64 | 0.1x | -39% |
| FY2007 Q2 | Sep 30 2006 | $3.16 | $29.98 | 0.1x | -33% |
| FY2007 Q1 | Jun 30 2006 | $2.77 | $17.73 | 0.2x | -1% |
| FY2006 Q4 | Mar 31 2006 | $3.14 | $10.81 | 0.3x | +83% |
| FY2006 Q3 | Dec 31 2005 | $2.16 | $9.42 | 0.2x | +45% |
| FY2006 Q2 | Sep 30 2005 | $1.95 | $5.56 | 0.4x | +121% |
| FY2006 Q1 | - | $1.69 | $3.10 | 0.5x | +244% |
| FY2005 Q4 | - | $1.71 | $1.98 | 0.9x | +445% |
| FY2005 Q3 | Dec 31 2004 | $1.98 | $5.78 | 0.3x | +116% |
| FY2005 Q2 | - | $1.61 | $9.40 | 0.2x | +8% |
| FY2005 Q1 | Jun 30 2004 | $1.74 | $12.10 | 0.1x | -9% |
| FY2004 Q4 | Mar 31 2004 | $2.40 | $16.15 | 0.1x | -6% |
| FY2004 Q3 | Dec 31 2003 | $3.16 | $19.16 | 0.2x | +4% |
| FY2004 Q2 | - | $2.35 | $19.83 | 0.1x | -25% |
| FY2004 Q1 | Jun 30 2003 | $2.33 | $19.98 | 0.1x | -26% |
| FY2003 Q4 | Mar 31 2003 | $1.94 | $22.70 | 0.1x | -46% |
| FY2003 Q3 | - | $1.93 | $24.97 | 0.1x | -51% |
| FY2003 Q2 | Sep 30 2002 | $1.68 | $29.00 | 0.1x | -63% |
| FY2003 Q1 | Jun 30 2002 | $1.94 | $36.63 | 0.1x | -67% |
| FY2002 Q4 | Mar 31 2002 | $2.21 | $32.01 | 0.1x | -56% |
Average P/E for displayed period: 0.2x
RDY Chart Terminal
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Peer Comparison
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RDY — Frequently Asked Questions
Quick answers to the most common questions about buying RDY stock.
What is RDY's P/E ratio?
Dr. Reddy's Laboratories Limited (RDY) trailing twelve-month P/E ratio is 21.8x, based on TTM diluted EPS of $39.83. The 5-year average P/E is 0.1x and the historical range spans 0.0x to 0.4x.
Is RDY stock overvalued or undervalued?
RDY trades at 21.8x P/E, above its 5-year average of 0.1x. The 100th percentile ranking within the 0.0x–0.4x historical range indicates a premium to historical valuation.
Is RDY stock expensive?
Yes, RDY is expensive relative to its own history. The current P/E of 21.8x is above the 5-year average of 0.1x. The stock sits at the 100th percentile of its 5-year valuation range.
What is RDY's historical P/E range?
Over the past 5 years, RDY's P/E ratio has ranged from 0.0x to 0.4x, with a median of 0.1x and an average of 0.1x. The current P/E of 21.8x places the stock at the 100th percentile of this range. Full historical data spans 2002–2027.
How does RDY's P/E compare to the S&P 500?
RDY trades at 21.8x P/E versus the S&P 500 median of 24.6x. The 11% discount to the market suggests lower growth expectations or perceived higher risk.
How does RDY's valuation compare to Healthcare peers?
Dr. Reddy's Laboratories Limited P/E of 21.8x compares to the Healthcare sector median of 23.2x. The discount suggests lower growth expectations, weaker margins, or higher perceived risk relative to peers. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is RDY's PEG ratio?
RDY PEG ratio is 1.03, based on a P/E of 21.8x and EPS growth of -20.4%. A PEG between 1 and 2 suggests valuation aligns with growth expectations — typically considered fair.
What is RDY's earnings yield?
RDY earnings yield is 4.59%, the inverse of its 21.8x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.