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Capital Goods · NSE: LT

Larsen & Toubro Limited - Fair Value & Intrinsic Value Estimate

Intrynsic's multi-model valuation estimates Larsen & Toubro Limited's fair value at ₹2,582 per share (range ₹2,232–₹3,342) against a market price of ₹3,786 - a gap of -31.8% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.

Low ₹2,232Above fair-value est.High ₹3,342

Market price

₹3,786

close of 24 Jul 2026

Est. fair value

₹2,582

₹2,232–₹3,342

Gap

-31.8%

price vs estimate

Trading ~32% above our estimated fair-value range. Assumptions and per-model workings are below.

What Larsen & Toubro Limited does

Larsen & Toubro is India's biggest engineering and construction group, building everything from metros and airports to defence hardware. Its order book reflects the country's infrastructure spending cycle.

Capital Goods · Industrial Manufacturing

Health signals

GrowthRevenue +16.0%/yr (3y)Good

Over the last 3 years, revenue grew 16.0%/yr and profit grew 14.8%/yr.

ProfitabilityROE 17.3%Good

Every ₹100 of shareholder money earned ₹17.3 in profit last year, vs a sector median of 11.2%.

DebtD/E 1.15Okay

Debt is 1.15x equity — manageable, worth watching.

Valuation-32% vs estimateWeak

The market price is above our estimated fair-value range (based on stated assumptions).

Quality₹88 cash per ₹100 profitGood

About ₹88 of every ₹100 of reported profit turned into free cash (median, last 5 years); operating cash flow was positive in 5 of 5 years.

The valuation, explained- models, weights & assumptions ▾

Intrynsic values Larsen & Toubro Limited with 3 independent models and blends them into one estimated fair-value range. Every number below is an estimate based on the stated assumptions - change the assumptions and the estimate changes.

ModelEstimated valuevs priceWeight
DCFFuture Cash Flows Method₹3,342-12%-
EV/EBITDAIndustry Comparison Method₹2,582-32%-
P/E MultipleEarnings Multiple Method₹2,232-41%-

Key assumptions

Risk-free rate
7.0%
Equity risk premium
6.5%
Beta
1.081
Cost of equity
14.0%
Terminal growth
5.0%
Tax rate
25%

Reverse DCF: today's market price implies the company must grow free cash flow about 28.8% a year for the next decade - versus 16.3% historical revenue growth.

Key financialsFY17–FY26

Full statements & analysis →
Revenue₹2,85,874 Cr
Net profit₹18,954 Cr
EPS₹116.92
Free cash flow₹11,932 Cr
ROE (latest)17.3%
Revenue growth (CAGR)11.3%
Profit growth (CAGR)12.7%

Peers

Garuda Construction and Engineering Limited₹1,604 CrP/E 13.1ROE 27.0%
Central Mine Planning & Design Institute Limited₹18,064 CrP/E 29.5ROE 26.9%
GK Energy Limited₹2,765 CrP/E 13.6ROE 23.0%
Suyog Gurbaxani Funicular Ropeways Limited₹244 CrP/E 22.2ROE 30.6%
Univastu India Limited₹449 CrP/E 19.3ROE 25.2%
Ashoka Buildcon Limited₹3,486 CrP/E 1.4ROE 39.1%
Ask AI about Larsen & Toubro LimitedChat with Intrynsic's research agent about results, risks and filings.Sign up free →Track it in your watchlistFair-value alerts, result-day briefs and portfolio analytics.Sign up free →See the full model workingsEvery assumption, per-model trace, reverse DCF and peer lens.Sign up free →

Frequently asked questions

What is Larsen & Toubro Limited's intrinsic value?

Intrynsic's multi-model valuation estimates Larsen & Toubro Limited's fair value at ₹2,582 per share (range ₹2,232–₹3,342), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.

Is Larsen & Toubro Limited overvalued or undervalued?

Larsen & Toubro Limited trades at ₹3,786 against Intrynsic's estimated fair value of ₹2,582 - the market price is 32% above the estimate, i.e. above our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.

What is Larsen & Toubro Limited's P/E ratio?

Larsen & Toubro Limited trades at about 32.4 times its latest annual earnings per share.

What does Larsen & Toubro Limited do?

Larsen & Toubro is India's biggest engineering and construction group, building everything from metros and airports to defence hardware. Its order book reflects the country's infrastructure spending cycle.

How is Larsen & Toubro Limited's fair value calculated?

Intrynsic runs 3 valuation models for Larsen & Toubro Limited (DCF, EV/EBITDA, P/E Multiple) and blends them into one estimated fair-value range. Every assumption - growth, discount rate, terminal value - is shown openly on this page.

Disclaimer: Intrynsic provides educational and informational analysis only. Fair-value figures are estimates based on stated assumptions - they are not investment advice, research recommendations, or an offer to transact in any security. Intrynsic is not a SEBI-registered investment adviser or research analyst. Markets carry risk; please do your own research or consult a registered adviser before making investment decisions. Prices shown may be delayed end-of-day values. Terms · Privacy

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