Larsen & Toubro Intrinsic Value

LT · NSE

— · —

Current market price

₹3,693.4

Closing price — 1 Oct 2026

Market cap ₹5,18,775 Cr · EPS ₹114.35

Valuation

Blended fair value using DCF and peer comparison methods.

Larsen & Toubro Intrinsic Value Analysis

The latest available EOD closing price for Larsen & Toubro (LT) is ₹3,693 per share. Understock's estimated intrinsic value is ₹6,400 per share. This estimate is 73.3% above that price; the page's comparison band labels the shares undervalued.

The stored DCF estimate is ₹2,112, and the peer-based estimate is ₹10,689. The displayed value combines them using the stored DCF weight of 50% and peer weight of 50%. Peer comparison uses 8 matched sector companies and contributing P/E, P/B, EV/EBITDA multiples.

For context, available company data reports ROCE of 10.1% and P/E of 32.3×. These metrics describe the business and are not separate intrinsic-value estimates.

How Understock Calculates Intrinsic Value

Understock follows the company's stored valuation classification. Where DCF applies, the model discounts projected or normalized cash flows and terminal value using stored assumptions. Peer valuation compares available company multiples with medians from matched industry or sector companies, with a curated peer-group fallback where database matches are unavailable; the contributing multiples and their weights depend on sector rules and available data. For Larsen & Toubro, the displayed estimate uses both stored values and their respective weights. DCF and peer estimates can differ because they use different assumptions, financial metrics, and market reference points.

Review this company's DCF valuation · Learn how DCF works · Use the DCF calculator · See Larsen & Toubro peer valuation · What intrinsic value means

The intrinsic value shown is an algorithmic estimate based on publicly available financial data — including DCF analysis, peer comparison, and historical financials. It is not a research report, investment advice, or a recommendation to buy, sell, or hold any security. Stock valuations involve uncertainty and may differ significantly from market prices. Please consult a SEBI-registered investment adviser before making any investment decision.

Larsen & Toubro Peer Comparison

How this company stacks up against sector peers on valuation and quality metrics.

Capital Goods · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Larsen & Toubro LT · you	₹5.2 L Cr	32.3×	4.7×	23.0×	14.7%	5.6%	16.0%
Sector median	—	77.2×	18.1×	37.4×	22.2%	13.4%	16.0%
Hindustan Aeronautics HAL	₹3.3 L Cr	32.3×	7.2×	28.4×	22.2%	27.5%	7.1%
Bharat Electronics BEL	₹3.0 L Cr	49.5×	12.5×	37.4×	25.3%	22.0%	15.9%
Cummins India CUMMINSIND	₹1.6 L Cr	66.0×	18.4×	62.0×	27.9%	19.4%	16.0%
Hitachi Energy India POWERINDIA	₹1.5 L Cr	156.2×	29.8×	126.0×	19.1%	12.1%	22.2%
ABB India ABB	₹1.5 L Cr	88.3×	18.8×	72.8×	21.3%	12.6%	15.5%
Siemens SIEMENS	₹1.5 L Cr	115.3×	28.9×	92.4×	25.1%	14.1%	—
Polycab India POLYCAB	₹1.4 L Cr	54.3×	12.1×	36.2×	22.3%	9.3%	27.0%
CG Power and Industrial Solutions CGPOWER	₹1.4 L Cr	117.4×	17.9×	90.2×	15.1%	9.7%	21.2%

Peer comparison verdict

Larsen trades at a discount to sector peers on P/E (32.3× vs median 77.2×). This may signal undervaluation — or reflect lower expected growth or higher perceived risk versus the peer group.

Business quality

Valuation

P/E ratio

32.3×

P/B ratio

—

EV/EBITDA

—

Price/Sales

—

Returns

ROE

14.7%

ROCE

10.1%

ROA

—

Growth

Revenue CAGR (3yr)

16.0%

EPS CAGR (3yr)

15.4%

Efficiency

Asset turnover

—

FCF yield

2.3%

Dividend yield

—

Liquidity & Solvency

Debt / Equity

0.90×

Debt / EBITDA

—

Interest coverage

6.6×

Current ratio

1.25×

Quick ratio

—

Financial health

Piotroski F-Score, Altman Z-Score, and key solvency ratios.

Is the business financially healthy?

Two structured frameworks that go beyond a single number to assess financial strength.

Calculated from annual report data sourced via BSE/NSE filings. For precise figures refer to BSE/NSE filings.

Full financial data

Charts and annual statements for income, balance sheet and cash flow.

Income trend

Revenue, profit and margin trends over time.

Revenue

Net profit

Operating margin

Net margin

Revenue

₹2.9 L Cr

Net profit

₹16,084 Cr

Operating margin

—

Net margin

5.6%

Revenue and net profit in ₹ Crores (left axis). Margins % on right axis.

Cash flow

Where cash comes from and where it goes.

Operating CFInvesting CFFinancing CFFree cash flow

Operating CF — Cash earned from running the business. The core engine of financial health.

Investing CF — Cash spent on assets and equipment. Negative is normal — it means the company is investing in growth.

Financing CF — Cash from borrowing or repaying loans and dividends. Negative means debt is being repaid.

Free cash flow — Operating CF minus capex. Cash left after keeping the business running. Positive and growing is ideal.

Operating CF

₹16,740.97 Cr

Investing CF

₹0 Cr

Financing CF

₹0 Cr

Free cash flow

₹11,931.78 Cr

Balance sheet

Assets show what the company owns. Liabilities show what it owes. Equity is what's left for shareholders.

How the company is funded — equity is owners' money, debt is long-term borrowing, current liabilities are short-term obligations.

Equity

Debt

Current liabilities

Total assets

—

Total debt

₹98,517 Cr

Equity

₹1.1 L Cr

Debt / Equity

0.90×

Numbers are illustrative — order-of-magnitude correct. For precise figures, refer to the company's annual report on BSE/NSE.

Shareholding pattern

Who owns this company and how that has changed.

Shareholding data is not yet available for this company.