Larsen & Toubro Valuation

Is LS&TB 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 LS&TB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LS&TB ($42.6) is trading above our estimate of fair value ($27.8)

Significantly Below Fair Value: LS&TB is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LS&TB?

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

The above table shows the Price to Earnings ratio for LS&TB. This is calculated by dividing LS&TB's market cap by their current earnings.
What is LS&TB's PE Ratio?
PE Ratio	36.9x
Earnings	₹134.31b
Market Cap	₹4.96t

LS&TB 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	20.6x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does LS&TB's PE Ratio compare to its peers?

The above table shows the PE ratio for LS&TB 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	29.1x
DG Vinci	12.4x	6.5%	€57.0b
PWR Quanta Services	62.3x	18.4%	US$50.5b
601668 China State Construction Engineering	4.9x	6.8%	CN¥247.6b
FER Ferrovial	36.9x	4.6%	€27.1b
LS&TB Larsen & Toubro	36.9x	20.0%	US$5.0t

Price-To-Earnings vs Peers: LS&TB is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the peer average (29.1x).

Price to Earnings Ratio vs Industry

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

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LS&TB is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the European Construction industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is LS&TB'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.

LS&TB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	36.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LS&TB'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.