Is L&T Technology overvalued or undervalued?

As of 20 August 2025, L&T Technology's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its high PE ratio of 35.38, a Price to Book Value of 7.38, and an EV to EBITDA of 22.62. Compared to peers, TCS has a more attractive PE ratio of 22.74, while Infosys stands at 22.79, both suggesting that L&T Technology's valuation is not justified relative to its competitors.
The overall verdict is that L&T Technology is overvalued. The company has shown a negative return of -21.09% over the past year, contrasting sharply with the Sensex's modest gain of 1.31%, further reinforcing concerns about its current valuation. The high PEG ratio of 0.00 also raises red flags about future growth expectations, suggesting that investors may be paying a premium without adequate growth prospects.