Is L&T Finance Ltd overvalued or undervalued?

Oct 15 2025 08:04 AM IST
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As of October 14, 2025, L&T Finance Ltd is considered very expensive and overvalued with a PE ratio of 24.70, an EV to EBITDA of 14.83, and a PEG ratio of 3.52, despite outperforming the Sensex with a 59.00% return over the past year.
As of 14 October 2025, the valuation grade for L&T Finance Ltd has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 24.70, an EV to EBITDA of 14.83, and a PEG ratio of 3.52, which indicate that the stock is trading at a premium compared to its earnings growth potential.

In comparison to its peers, L&T Finance Ltd's PE ratio is significantly lower than Bajaj Finance's 36.37 but higher than Life Insurance's attractive valuation of 11.7. Additionally, while Bajaj Finserv is also categorized as expensive with a PE of 33.86, L&T Finance's metrics suggest it is not justified at its current valuation. Notably, L&T Finance has outperformed the Sensex significantly over the past year, with a return of 59.00% compared to the Sensex's 0.07%, reinforcing the notion that its current price may not reflect its intrinsic value.
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