Larsen & Toubro Intrinsic Value
Larsen & Toubro (LT) median intrinsic value is ₹4673.85 from 10 valuation models (range ₹1136–₹7571), vs current price ₹3785.60 — +23.5% upside (Trading Below Calculated Value), margin of safety 19.0%. Read LT dividend payout details for the complete payout history and dividend yield track record.
LT Valuation Methods Summary — DCF, Graham Number & P/E
Larsen & Toubro intrinsic value across 10 models vs current price ₹3785.60 — upside/downside and value range per method. Analyse Larsen & Toubro shareholding analysis to track promoter, FII and institutional holdings.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1858.08 | ₹1486.46 - ₹2229.70 | -50.9% | EPS: ₹154.84, Sector P/E: 12x |
| Book Value Method | asset | ₹4673.85 | ₹4206.47 - ₹5141.24 | +23.5% | Book Value/Share: ₹4673.85, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹7571.20 | ₹6814.08 - ₹8328.32 | +100.0% | Revenue/Share: ₹12277.67, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹7571.20 | ₹6814.08 - ₹8328.32 | +100.0% | EBITDA: ₹48264.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹5651.64 | ₹4521.31 - ₹6781.97 | +49.3% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹1135.68 | ₹1022.11 - ₹1249.25 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1275.88 | ₹1148.29 - ₹1403.47 | -66.3% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹7571.20 | ₹6814.08 - ₹8328.32 | +100.0% | ROE: 19.1%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹4035.25 | ₹3631.72 - ₹4438.78 | +6.6% | EPS: ₹154.84, BVPS: ₹4673.85 |
| Dividend Yield Method | dividend | ₹1135.68 | ₹1022.11 - ₹1249.25 | -70.0% | DPS: ₹38.00, Target Yield: 3.5% |
LT Intrinsic Value vs Market Price — All Valuation Models
Larsen & Toubro fair value range ₹1136–₹7571 vs current market price ₹3785.60 across 10 valuation models. For current market price and key ratios, visit LT stock price BSE.
LT Intrinsic Value Analysis — Undervalued or Overvalued?
Larsen & Toubro median intrinsic value ₹4673.85, current price ₹3785.60 — Trading Below Calculated Value by 23.5%, margin of safety 19.0%.
What is the intrinsic value of LT?
Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of Larsen & Toubro (LT) is ₹4673.85 (median value). With the current market price of ₹3785.60, this represents a +23.5% variance from our estimated fair value.
The valuation range spans from ₹1135.68 to ₹7571.20, indicating ₹1135.68 - ₹7571.20.
Is LT undervalued or overvalued?
Based on our multi-method analysis, Larsen & Toubro (LT) appears to be trading below calculated value by approximately 23.5%.
LT Financial Health — Key Ratios vs Industry Benchmarks
Larsen & Toubro 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 | 3.24 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 19.1% | 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 | 0.75x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
LT Cash Flow Quality — Operating & Free Cash Flow
Larsen & Toubro 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 | ₹16,741 Cr | ₹11,051 Cr | Positive Free Cash Flow | 8/10 |
| March 2025 | ₹9,151 Cr | ₹1,411 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 |