LARSEN & TOUBRO LTD. Fair Value
LT · Construction · Current price ₹3,814.5
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹813 | 16% ROE fading to 14% over ~3 yrs, on ₹794 book |
| Relative P/E | ₹3,578 | EPS × 30.6 peer-median P/E |
| Graham floor | ₹1,445 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is LARSEN & TOUBRO LTD. undervalued?
DocStoX estimates the fair value of LARSEN & TOUBRO LTD. at ₹1,689 per share, versus the current market price of ₹3,815. That puts the stock about -55.7% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹813), Relative P/E (₹3,578), Graham floor (₹1,445). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹813 (bear) to ₹1,689 (base) to ₹3,578 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on LARSEN & TOUBRO LTD.
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.