Is L&T Finance Ltd overvalued or undervalued?

Oct 18 2025 08:05 AM IST
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As of October 17, 2025, L&T Finance Ltd is fairly valued with a PE ratio of 24.70 and has outperformed the Sensex with a year-to-date return of 96.50%, positioning it well within the Non-Banking Financial Company sector compared to its peers.
As of 17 October 2025, L&T Finance Ltd has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 24.70, an EV to EBITDA of 8.25, and a Price to Book Value of 0.25. In comparison to its peers, Bajaj Finance is classified as very expensive with a PE ratio of 38.21, while Life Insurance is deemed very attractive with a PE ratio of 11.49, highlighting the relative positioning of L&T Finance within the industry.

Despite its fair valuation, L&T Finance Ltd has demonstrated strong stock performance, significantly outperforming the Sensex with a year-to-date return of 96.50% compared to the Sensex's 7.44%. This performance, coupled with its reasonable valuation metrics, suggests that the company is positioned well within the Non-Banking Financial Company sector.
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