LARSEN & TOUBRO LTD. Fair Value
LT · Construction · Current price ₹3,999
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹946 | 16% ROE fading to 12% over ~10 yrs, on ₹794 book |
| Relative P/E | ₹3,819 | EPS × 32.7 peer-median P/E |
| Graham floor | ₹1,445 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹4,434 | Street consensus 12-month target price |
Is LARSEN & TOUBRO LTD. undervalued?
DocStoX estimates the fair value of LARSEN & TOUBRO LTD. at ₹2,299 per share, versus the current market price of ₹3,999. That puts the stock about -42.5% 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 4 independent methods: Residual income (₹946), Relative P/E (₹3,819), Graham floor (₹1,445), Analyst target (₹4,434). 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 ₹946 (bear) to ₹2,299 (base) to ₹4,434 (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.