Larsen & Toubro Valuation

Is LTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LTO (CHF37.46) is trading above our estimate of fair value (CHF26.3)

Significantly Below Fair Value: LTO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LTO?

Key metric: As LTO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LTO. This is calculated by dividing LTO's market cap by their current earnings.
What is LTO's PE Ratio?
PE Ratio	37.3x
Earnings	₹134.31b
Market Cap	₹5.01t

LTO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	20.8x
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

How does LTO's PE Ratio compare to its peers?

The above table shows the PE ratio for LTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.3x
BRKN Burkhalter Holding	17.6x	4.0%	CHF 951.1m
IMPN Implenia	4x	-9.4%	CHF 545.5m
ABBN ABB	26.6x	9.2%	CHF 92.3b
SCHN Schindler Holding	29x	6.7%	CHF 27.0b
LTO Larsen & Toubro	37.3x	19.8%	CHF 5.0t

Price-To-Earnings vs Peers: LTO is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

How does LTO's PE Ratio compare vs other companies in the European Construction Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LTO is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the European Construction industry average (12.6x).

Price to Earnings Ratio vs Fair Ratio

What is LTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	37.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LTO's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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