Is Larsen & Toubro overvalued or undervalued?

Sep 23 2025 08:04 AM IST
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As of September 22, 2025, Larsen & Toubro is fairly valued with a PE ratio of 32.36 and an EV to EBITDA of 16.84, showing a positive weekly stock return of 1.41%, but a year-to-date return of 0.95% that lags behind the Sensex's 5.15%.
As of 22 September 2025, the valuation grade for Larsen & Toubro has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 32.36, an EV to EBITDA of 16.84, and a ROCE of 17.48%.

In comparison to its peers, Larsen & Toubro's valuation stands out against CG Power & Industries, which is deemed very expensive with a PE ratio of 121.08, and IRB Infrastructure Development, which is expensive with a PE ratio of 31.44. Notably, while Larsen & Toubro has shown a positive stock return of 1.41% over the past week compared to a 0.46% return for the Sensex, its year-to-date return of 0.95% lags behind the Sensex's 5.15%.
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