L&T Finance Intrinsic Value
LTF Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹141.12 | ₹112.90 - ₹169.34 | -55.8% | EPS: ₹11.76, Sector P/E: 12x |
| Book Value Method | asset | ₹82.18 | ₹73.96 - ₹90.40 | -74.3% | Book Value/Share: ₹102.73, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹95.81 | ₹86.23 - ₹105.39 | -70.0% | Revenue/Share: ₹69.52, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹173.48 | ₹156.13 - ₹190.83 | -45.7% | EBITDA: ₹10696.00Cr, EV/EBITDA: 5x |
| Simple DCF (5Y) | dcf | ₹127.74 | ₹102.19 - ₹153.29 | -60.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹95.81 | ₹86.23 - ₹105.39 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹96.90 | ₹87.21 - ₹106.59 | -69.7% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹159.68 | ₹143.71 - ₹175.65 | -50.0% | ROE: 11.5%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹164.87 | ₹148.38 - ₹181.36 | -48.4% | EPS: ₹11.76, BVPS: ₹102.73 |
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Valuation Comparison Chart
LTF Intrinsic Value Analysis
What is the intrinsic value of LTF?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of L&T Finance (LTF) is ₹127.74 (median value). With the current market price of ₹319.35, this represents a -60.0% variance from our estimated fair value.
The valuation range spans from ₹82.18 to ₹173.48, indicating ₹82.18 - ₹173.48.
Is LTF undervalued or overvalued?
Based on our multi-method analysis, L&T Finance (LTF) appears to be trading above calculated value by approximately 60.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.19 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 4.70 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 11.5% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 62.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.14x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for L&T Finance
Additional stock information and data for LTF
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹-16,587 Cr | ₹-16,587 Cr | Negative Cash Flow | 3/10 |
| March 2024 | ₹686 Cr | ₹686 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹6,718 Cr | ₹6,287 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹6,078 Cr | ₹3,535 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹5,464 Cr | ₹4,452 Cr | Positive Free Cash Flow | 8/10 |