Is L&T Technology overvalued or undervalued?

As of 17 October 2025, L&T Technology's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued. The PE ratio stands at 34.75, significantly higher than its peers such as TCS with a PE of 21.31 and Infosys at 21.29, highlighting a substantial premium. Additionally, the EV to EBITDA ratio for L&T Technology is 22.20, again above TCS's 8.21 and Infosys's 4.65, further supporting the overvaluation thesis.
With a Price to Book Value of 7.25 and a PEG ratio of 0.00, L&T Technology's metrics suggest that investors are paying a high price relative to its earnings growth potential. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -12.19% compared to the Sensex's 7.44%, reinforcing the notion that the stock may be overvalued in the current market environment.