Larsen & Toubro Limited (LT.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+0.9%

₹3,957.38

vs ₹3,923.10 price

Levered DCF

₹6,350.33

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.89

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	29.97×	31.45×	40.85×	25.07×	24.72×	11.36×	10.32×	22.24×
P/B	4.41×	4.84×	6.18×	2.94×	2.6×	2.27×	1.48×	3.17×
P/S	1.69×	1.82×	2.37×	1.41×	1.35×	1.23×	0.67×	1.44×
EV / EBITDA	17.84×	19.44×	23.13×	15.5×	15.94×	15.44×	12.29×	18.29×
Gross margin	12.8%	36.6%	37.3%	39.1%	38.7%	37.4%	33.7%	29.8%
Operating margin	8.7%	10.0%	10.4%	10.6%	10.9%	12.0%	11.5%	11.8%
Net margin	5.6%	5.8%	5.8%	5.6%	5.5%	8.3%	6.5%	6.5%
Current ratio	1.25×	1.21×	1.23×	1.37×	1.31×	1.42×	1.26×	1.24×
Debt / equity	1.15×	1.36×	1.35×	1.35×	1.52×	1.77×	2.15×	2.01×
Interest coverage	8.7×	2.53×	2.39×	2.03×	1.83×	1.39×	5.81×	8.46×
Dividend yield	1.0%	0.8%	0.8%	1.2%	1.2%	2.1%	4.6%	1.1%
Payout ratio	29.1%	25.6%	32.3%	29.5%	29.2%	31.5%	47.7%	25.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	14.7%	15.4%	15.1%	11.7%	10.5%	15.3%	14.3%	14.3%
Return on invested capital	6.6%	7.7%	8.0%	6.4%	5.5%	5.0%	5.8%	5.8%
Return on assets	3.6%	4.0%	3.8%	3.2%	2.7%	3.7%	3.1%	3.2%
Free cash flow yield	2.5%	1.0%	2.6%	7.1%	7.5%	12.2%	3.3%	-4.5%
Earnings yield	3.3%	3.2%	2.4%	4.0%	4.0%	6.7%	9.7%	4.5%
Enterprise value	₹5.9T	₹5.9T	₹6.4T	₹3.7T	₹3.3T	₹2.9T	₹2.3T	₹3.2T
Net debt / EBITDA	3.22×	3.94×	3.78×	4.39×	5.46×	6.38×	7.04×	6.87×
Cash conversion cycle (days)	45	28	140	164	179	203	87	218