L&T Finance Intrinsic Value
L&T Finance intrinsic value. L&T Finance (LTF) median intrinsic value is ₹128.21 from 10 valuation models (range ₹73–₹268), vs current price ₹244.10 — -47.5% downside (Trading Above Calculated Value), margin of safety -90.4%. For current market price and key ratios, visit LTF stock price BSE.
LTF Valuation Methods Summary — DCF, Graham Number & P/E
L&T Finance intrinsic value across 10 models vs current price ₹244.10 — upside/downside and value range per method. Compare with LTF fundamental valuation to assess whether the stock is under or overvalued.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹186.72 | ₹149.38 - ₹224.06 | -23.5% | EPS: ₹15.56, Sector P/E: 12x |
| Book Value Method | asset | ₹89.57 | ₹80.61 - ₹98.53 | -63.3% | Book Value/Share: ₹111.96, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹87.60 | ₹78.84 - ₹96.36 | -64.1% | Revenue/Share: ₹87.60, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹268.45 | ₹241.60 - ₹295.30 | +10.0% | EBITDA: ₹13444.00Cr, EV/EBITDA: 5x |
| Simple DCF (5Y) | dcf | ₹97.64 | ₹78.11 - ₹117.17 | -60.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹99.58 | ₹89.62 - ₹109.54 | -59.2% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹128.21 | ₹115.39 - ₹141.03 | -47.5% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹186.52 | ₹167.87 - ₹205.17 | -23.6% | ROE: 13.9%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹197.98 | ₹178.18 - ₹217.78 | -18.9% | EPS: ₹15.56, BVPS: ₹111.96 |
| Dividend Yield Method | dividend | ₹73.23 | ₹65.91 - ₹80.55 | -70.0% | DPS: ₹2.75, Target Yield: 4.0% |
LTF Intrinsic Value vs Market Price — All Valuation Models
L&T Finance fair value range ₹73–₹268 vs current market price ₹244.10 across 10 valuation models. Read L&T Finance dividend payments for the complete payout history and dividend yield track record.
LTF Intrinsic Value Analysis — Undervalued or Overvalued?
L&T Finance median intrinsic value ₹128.21, current price ₹244.10 — Trading Above Calculated Value by 47.5%, margin of safety -90.4%.
What is the intrinsic value of LTF?
Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of L&T Finance (LTF) is ₹128.21 (median value). With the current market price of ₹244.10, this represents a -47.5% variance from our estimated fair value.
The valuation range spans from ₹73.23 to ₹268.45, indicating ₹73.23 - ₹268.45.
Is LTF undervalued or overvalued?
Based on our multi-method analysis, L&T Finance (LTF) appears to be trading above calculated value by approximately 47.5%.
LTF Financial Health — Key Ratios vs Industry Benchmarks
L&T Finance financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Return on Equity | 13.9% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 61.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.15x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
LTF Cash Flow Quality — Operating & Free Cash Flow
L&T Finance operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2026 | ₹-14,189 Cr | ₹-14,189 Cr | Negative Cash Flow | 3/10 |
| March 2025 | ₹-16,588 Cr | ₹-16,588 Cr | Negative Cash Flow | 3/10 |
| March 2024 | ₹686 Cr | ₹686 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹7,491 Cr | ₹6,674 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹6,078 Cr | ₹3,535 Cr | Positive Free Cash Flow | 8/10 |