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 shift in perception but still reflecting a high valuation. The company is currently considered overvalued based on its key financial ratios, including a PE Ratio of 34.83, an EV to EBITDA of 22.25, and a Price to Book Value of 7.27. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, TCS has a more attractive PE Ratio of 22.28 and EV to EBITDA of 15.69, while Infosys shows a PE of 21.71 and EV to EBITDA of 14.23, highlighting L&T Technology's relatively high valuation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 11.98% compared to the Sensex's gain of 2.20%. This underperformance, combined with its elevated valuation metrics, reinforces the conclusion that L&T Technology is overvalued in the current market environment.