Larsen & Toubro Limited

BSE:500510 Stock Report

Market Cap: ₹5.1t

Larsen & Toubro Valuation

Is 500510 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 500510 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500510 (₹3706.1) is trading above our estimate of fair value (₹1889.29)

Significantly Below Fair Value: 500510 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500510?

Other financial metrics that can be useful for relative valuation.

500510 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/Revenue2.8x
Enterprise Value/EBITDA22.4x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does 500510's PE Ratio compare to its peers?

The above table shows the PE ratio for 500510 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average71.4x
RVNL Rail Vikas Nigam
36.7x7.0%₹533.8b
VOLTAS Voltas
129.4x42.9%₹361.6b
IRB IRB Infrastructure Developers
65x30.7%₹355.7b
534309 NBCC (India)
54.6x18.6%₹204.3b
500510 Larsen & Toubro
40.3x23.4%₹5.1t

Price-To-Earnings vs Peers: 500510 is good value based on its Price-To-Earnings Ratio (40.3x) compared to the peer average (71.4x).


Price to Earnings Ratio vs Industry

How does 500510's PE Ratio compare vs other companies in the IN Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 500510 is expensive based on its Price-To-Earnings Ratio (40.3x) compared to the Indian Construction industry average (24.8x).


Price to Earnings Ratio vs Fair Ratio

What is 500510'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.

500510 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.3x
Fair PE Ratio61.1x

Price-To-Earnings vs Fair Ratio: 500510 is good value based on its Price-To-Earnings Ratio (40.3x) compared to the estimated Fair Price-To-Earnings Ratio (61.1x).


Analyst Price Targets

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

The above table shows the analyst 500510 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,706.10
₹3,910.94
+5.5%
11.7%₹4,400.00₹1,874.00n/a32
Mar ’25₹3,634.50
₹3,910.94
+7.6%
11.7%₹4,400.00₹1,874.00n/a32
Feb ’25₹3,397.20
₹3,870.23
+13.9%
13.1%₹4,400.00₹1,874.00n/a30
Jan ’25₹3,522.35
₹3,282.84
-6.8%
12.2%₹4,000.00₹1,854.00n/a31
Dec ’24₹3,189.95
₹3,215.13
+0.8%
11.6%₹3,600.00₹1,854.00n/a31
Nov ’24₹2,894.35
₹3,160.47
+9.2%
12.3%₹3,600.00₹1,854.00n/a32
Oct ’24₹3,021.95
₹2,905.44
-3.9%
10.6%₹3,600.00₹1,921.00n/a34
Sep ’24₹2,701.30
₹2,815.34
+4.2%
8.6%₹3,080.00₹1,721.00n/a35
Aug ’24₹2,666.15
₹2,807.50
+5.3%
8.6%₹3,080.00₹1,721.00n/a36
Jul ’24₹2,474.50
₹2,559.44
+3.4%
8.9%₹2,900.00₹1,666.00n/a34
Jun ’24₹2,209.05
₹2,537.31
+14.9%
8.9%₹2,900.00₹1,666.00n/a35
May ’24₹2,364.75
₹2,472.51
+4.6%
8.7%₹2,827.00₹1,520.00n/a35
Apr ’24₹2,164.75
₹2,421.71
+11.9%
8.6%₹2,827.00₹1,520.00n/a35
Mar ’24₹2,114.95
₹2,400.25
+13.5%
8.3%₹2,770.00₹1,520.00₹3,634.5036
Feb ’24₹2,144.55
₹2,376.92
+10.8%
8.6%₹2,650.00₹1,520.00₹3,397.2036
Jan ’24₹2,086.30
₹2,272.08
+8.9%
8.5%₹2,500.00₹1,420.00₹3,522.3536
Dec ’23₹2,103.60
₹2,237.94
+6.4%
8.9%₹2,465.00₹1,420.00₹3,189.9534
Nov ’23₹2,024.85
₹2,211.88
+9.2%
8.9%₹2,455.00₹1,420.00₹2,894.3533
Oct ’23₹1,848.70
₹2,072.25
+12.1%
8.0%₹2,370.00₹1,420.00₹3,021.9532
Sep ’23₹1,911.55
₹2,052.41
+7.4%
8.0%₹2,370.00₹1,420.00₹2,701.3032
Aug ’23₹1,814.20
₹2,035.71
+12.2%
8.4%₹2,370.00₹1,370.00₹2,666.1535
Jul ’23₹1,569.55
₹1,990.61
+26.8%
9.0%₹2,357.00₹1,370.00₹2,474.5033
Jun ’23₹1,648.55
₹2,004.67
+21.6%
8.7%₹2,357.00₹1,473.00₹2,209.0533
May ’23₹1,695.80
₹2,233.82
+31.7%
7.8%₹2,525.00₹1,473.00₹2,364.7534
Apr ’23₹1,790.40
₹2,240.56
+25.1%
7.8%₹2,525.00₹1,473.00₹2,164.7534
Mar ’23₹1,816.90
₹2,266.68
+24.8%
8.2%₹2,675.00₹1,473.00₹2,114.9534

Analyst Forecast: Target price is less than 20% higher than the current share price.


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