Is L&T Technology overvalued or undervalued?

As of 16 October 2025, the valuation grade for L&T Technology has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued based on its current metrics, with a PE ratio of 35.02, an EV to EBITDA of 22.38, and a Price to Book Value of 7.31. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, L&T Technology's valuation stands out unfavorably; for instance, TCS has a PE ratio of 21.37 and EV to EBITDA of 8.26, while Infosys has a PE of 22.44 and EV to EBITDA of 14.73. This stark contrast highlights the overvaluation of L&T Technology relative to its industry peers. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date return of -11.51% compared to the Sensex's 6.82%, reinforcing the notion that the stock may not justify its current valuation.