Is L&T Technology overvalued or undervalued?

As of 8 August 2025, L&T Technology's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios. Key ratios include a PE ratio of 34.83, an EV to EBITDA of 22.25, and a Price to Book Value of 7.27, all of which are significantly higher than its peers. For instance, TCS has a PE ratio of 22.28 and Infosys stands at 21.71, highlighting L&T Technology's premium valuation compared to these competitors.
In the context of its performance, L&T Technology has underperformed against the Sensex, with a year-to-date return of -11.98% compared to the Sensex's positive return of 2.20%. This underperformance, combined with its high valuation ratios, suggests that the stock may not be an attractive investment at its current price of 4,170.00. Overall, the analysis indicates that L&T Technology is overvalued relative to its peers and market performance.