Larsen & Toubro P/B Ratio

LT • Price-to-Book ratio analysis and book value breakdown
Current P/B Ratio
5.63
High Valuation
Very High - Significant premium, high growth expectations or speculative

Current Valuation Metrics

P/B Ratio 5.63
Current Price ₹4157.00
Book Value/Share ₹4196.51
Exchange NSE

Book Value Breakdown (2025)

Balance Sheet Components
Total Equity ₹115,404 Cr
Share Capital ₹275 Cr
Reserves & Surplus ₹97,381 Cr
Outstanding Shares 275,000,000
Book Value per Share ₹4196.51

Valuation Signal

Signal Overvalued
Historical Avg 0.82
Historical Range 0.61 - 0.97
Percentile 100.0%

Sector Context

Sector Average 0.25
Sector Median 0.58
Sector Rank #11 of 50
Sector Percentile 22.0%

Key P/B Ratio Insights for Larsen & Toubro

  • Stock appears overvalued with PB of 5.63, trading at significant premium to book value
  • Trading at high premium to book value - indicates strong growth expectations or asset-light business model
  • Current PB is 583.3% above historical average
  • Trading at premium to sector average PB of 0.25

View the current stock price of Larsen & Toubro for more insights.

P/B Ratio Historical Trend for Larsen & Toubro

Historical P/B ratio trend based on balance sheet data. P/B below 1.0 may indicate undervaluation, while higher ratios suggest growth expectations or asset-light business models.

Historical P/B Ratio Data

Year P/B Ratio Book Value/Share (₹) Year-end Price (₹) Total Equity (₹ Cr) Valuation
2025 0.97 ₹4196.51 ₹4083.50 ₹115,404 Low
2024 0.97 ₹3729.09 ₹3607.65 ₹102,550 Low
2023 0.96 ₹3685.66 ₹3526.00 ₹103,567 Low
2022 0.61 ₹3394.09 ₹2085.80 ₹95,374 Low
2021 0.61 ₹3128.83 ₹1895.90 ₹87,920 Low

Sector P/B Ratio Comparison

Comparing Larsen & Toubro with other companies in Construction sector
Sector Average
0.25
Sector Median
0.58
Lowest P/B
-3.9
Highest P/B
0.92
Companies
50
Company Symbol P/B Ratio Market Cap (₹ Cr) Valuation
Hemadri Cements HEMACEM -3.9 ₹33 Low
Refex Renewables Infrast… REFEXRENEW -1.77 ₹123 Low
BGR Energy Systems BGRENERGY -1.3 ₹2,473 Low
Sadbhav Engineering SADBHAV -0.89 ₹189 Low
Triveni Glass TRIVENIGQ -0.77 ₹12 Low
Panyam Cements & Mineral… PANCM -0.43 ₹107 Low
Vardhman Concrete VARDHMAN -0.42 ₹5 Low
GVK Power & Infrastructu… GVKPIL -0.34 ₹488 Low
Sadbhav Infrastructure P… SADBHIN -0.25 ₹130 Low
Kridhan Infra KRIDHANINF -0.15 ₹42 Low