Larsen & Toubro Intrinsic Value
LT • Construction
Current Stock Price
₹4005.90
Primary Intrinsic Value
₹1369.92
Market Cap
₹1101.6K Cr
-18.0%
Downside
Median Value
₹3283.16
Value Range
₹1202 - ₹8012
Assessment
Trading Above Median Value
Safety Margin
-22.0%
LT Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1369.92 | ₹1095.94 - ₹1643.90 | -65.8% | EPS: ₹114.16, Sector P/E: 12x |
| Book Value Method | asset | ₹4196.51 | ₹3776.86 - ₹4616.16 | +4.8% | Book Value/Share: ₹4196.51, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹8011.80 | ₹7210.62 - ₹8812.98 | +100.0% | Revenue/Share: ₹10089.89, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹8011.80 | ₹7210.62 - ₹8812.98 | +100.0% | EBITDA: ₹39592.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹3092.69 | ₹2474.15 - ₹3711.23 | -22.8% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹1201.77 | ₹1081.59 - ₹1321.95 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1201.77 | ₹1081.59 - ₹1321.95 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹8011.80 | ₹7210.62 - ₹8812.98 | +100.0% | ROE: 16.2%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹3283.16 | ₹2954.84 - ₹3611.48 | -18.0% | EPS: ₹114.16, BVPS: ₹4196.51 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
Valuation Comparison Chart
LT Intrinsic Value Analysis
What is the intrinsic value of LT?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Larsen & Toubro (LT) is ₹3283.16 (median value). With the current market price of ₹4005.90, this represents a -18.0% variance from our estimated fair value.
The valuation range spans from ₹1201.77 to ₹8011.80, indicating ₹1201.77 - ₹8011.80.
Is LT undervalued or overvalued?
Based on our multi-method analysis, Larsen & Toubro (LT) appears to be trading above median value by approximately 18.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 3.95 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 16.2% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 13.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.73x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Larsen & Toubro
Additional stock information and data for LT
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹9,161 Cr | ₹1,417 Cr | Positive Free Cash Flow | 7/10 |
| March 2024 | ₹18,266 Cr | ₹18,266 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹22,777 Cr | ₹18,753 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹19,164 Cr | ₹17,372 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹23,074 Cr | ₹20,199 Cr | Positive Free Cash Flow | 8/10 |