Is Larsen & Toubro overvalued or undervalued?

Sep 17 2025 08:04 AM IST
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As of September 16, 2025, Larsen & Toubro is considered undervalued with an attractive valuation grade, a PE ratio of 32.57, and a strong performance of 91.04% return over the past three years, significantly outperforming its peers like CG Power & Industries and Siemens.
As of 16 September 2025, the valuation grade for Larsen & Toubro has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued. Key ratios include a PE ratio of 32.57, an EV to EBITDA of 16.94, and a ROCE of 17.48%.

In comparison to peers, Larsen & Toubro's PE ratio is significantly lower than CG Power & Industries, which stands at 124.38, and Siemens at 61.77, both of which are categorized as very expensive. This suggests that Larsen & Toubro offers a more favorable valuation relative to its peers. Additionally, the company's stock has outperformed the Sensex over the past three years with a return of 91.04% compared to the Sensex's 40.01%, reinforcing its attractive valuation proposition.
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