L&T Finance Intrinsic Value
L&T Finance (LTF) median intrinsic value is ₹120.96 from 10 valuation models (range ₹90–₹230), vs current price ₹302.40 — -60.0% downside (Trading Above Calculated Value), margin of safety -100.0%. Read L&T Finance dividend payments for the complete payout history and dividend yield track record.
LTF Valuation Methods Summary — DCF, Graham Number & P/E
L&T Finance intrinsic value across 10 models vs current price ₹302.40 — upside/downside and value range per method. Analyse LTF institutional holdings to track promoter, FII and institutional holdings.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹154.56 | ₹123.65 - ₹185.47 | -48.9% | EPS: ₹12.88, Sector P/E: 12x |
| Book Value Method | asset | ₹89.57 | ₹80.61 - ₹98.53 | -70.4% | Book Value/Share: ₹111.96, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹90.72 | ₹81.65 - ₹99.79 | -70.0% | Revenue/Share: ₹76.21, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹230.11 | ₹207.10 - ₹253.12 | -23.9% | EBITDA: ₹11524.00Cr, EV/EBITDA: 5x |
| Simple DCF (5Y) | dcf | ₹120.96 | ₹96.77 - ₹145.15 | -60.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹90.72 | ₹81.65 - ₹99.79 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹106.13 | ₹95.52 - ₹116.74 | -64.9% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹155.08 | ₹139.57 - ₹170.59 | -48.7% | ROE: 11.5%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹180.13 | ₹162.12 - ₹198.14 | -40.4% | EPS: ₹12.88, BVPS: ₹111.96 |
| Dividend Yield Method | dividend | ₹90.72 | ₹81.65 - ₹99.79 | -70.0% | DPS: ₹2.75, Target Yield: 4.0% |
LTF Intrinsic Value vs Market Price — All Valuation Models
L&T Finance fair value range ₹90–₹230 vs current market price ₹302.40 across 10 valuation models. For current market price and key ratios, visit LTF stock price BSE.
LTF Intrinsic Value Analysis — Undervalued or Overvalued?
L&T Finance median intrinsic value ₹120.96, current price ₹302.40 — Trading Above Calculated Value by 60.0%, margin of safety -100.0%.
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 ₹120.96 (median value). With the current market price of ₹302.40, this represents a -60.0% variance from our estimated fair value.
The valuation range spans from ₹89.57 to ₹230.11, indicating ₹89.57 - ₹230.11.
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%.
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 |
|---|---|---|---|---|
| Current Ratio | 0.14 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Return on Equity | 11.5% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 60.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.13x | 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 |