Is L&T Technology overvalued or undervalued?

Sep 26 2025 08:03 AM IST
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As of September 25, 2025, L&T Technology is considered overvalued with a valuation grade of "expensive," highlighted by a PE Ratio of 34.37 and a year-to-date return of -13.14%, significantly underperforming compared to its peers and the Sensex.
As of 25 September 2025, L&T Technology's valuation grade has moved from very expensive to expensive, indicating a shift towards a less favorable assessment. The company is currently deemed overvalued. Key ratios include a PE Ratio of 34.37, an EV to EBITDA of 21.94, and a Price to Book Value of 7.17, which are significantly higher than its peers. For instance, TCS has a PE Ratio of 21.74 and an EV to EBITDA of 15.3, while Infosys stands at a PE of 22.62 and an EV to EBITDA of 14.85, highlighting the premium L&T Technology commands.

Additionally, the company has experienced a decline in stock performance, with a year-to-date return of -13.14%, compared to a 3.87% gain in the Sensex. This underperformance, coupled with its high valuation ratios, reinforces the conclusion that L&T Technology is overvalued in the current market environment.
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