LT.NS · Intrinsic value
Is Larsen & Toubro Limited (LT.NS) overvalued or undervalued?
Larsen & Toubro Limited (LT.NS) trades at the delayed market price of ₹3,683.30 a share. That price already implies revenue growth of 4.2% a year for 5 years. TickerWorth's fair value is ₹3,705.52 a share (priced within our range of ₹1,362.35 – ₹4,528.13). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is LT.NS fairly valued?
- Fair value
- ₹3,705.52
- Market price
- ₹3,683.30
- Upside to fair value
- +0.6%
- Verdict
- Priced within our range of ₹1,362.35 – ₹4,528.13
Reverse DCF: Today's price implies revenue growth of 4.2% a year for 5 years; our model assumes 6.0% a year on average over the same horizon.
What is LT.NS's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Industrials companies in India
Its strongest point: looks cheap on the numbers. Its weakest: recent price trend has been weak.
- Value · 91 of 100
Cheaper than 91% of Industrials companies in India
- Price vs worth · 50 of 100
- Quality · 38 of 100
More profitable than 38% of Industrials companies in India
- Financial health · 33 of 100
Financially stronger than 33% of Industrials companies in India
- Growth · 34 of 100
Growing faster than 34% of Industrials companies in India
- Momentum · 20 of 100
Outperformed 20% of Industrials companies in India over the past year
Confidence: High confidence · Scored
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LT.NS DCF valuation, input by input
At a recent price of ₹3,683, Larsen & Toubro Limited (LT.NS) trades roughly at TickerWorth's blended fair value of ₹3,706 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices LT.NS in line with our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +0.6% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values LT.NS at about ₹4,107 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Larsen & Toubro Limited's projected free cash flows at a weighted-average cost of capital (WACC) of 7.4%, with a long-run terminal growth rate of 2.5%. About 80% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 4.2% annual revenue growth for LT.NS. Our base case instead compounds to about 6.0% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, LT.NS's modeled DCF value ranges from about ₹2,680 to ₹8,521 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Larsen & Toubro Limited would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of LT.NS's intrinsic value. Figures update as new filings and prices come in.
Every input behind LT.NS's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | ₹2,969,008,080,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 10.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 8% → 7% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.52 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 1,376M |
| Market priceLast known price · as of 2026-10-19 13:20 UTC | ₹3,683 |
Change LT.NS's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Larsen & Toubro Limited do?
What does it do?
Larsen & Toubro Limited engages in engineering, procurement, and construction projects (EPC) in India and internationally. The company operates through four segments: Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, and Others. It operates in the Engineering & Construction industry (Industrials sector), headquartered in India. The company employs roughly 55,662 people.
How does it make money?
The business turns 3.0T in annual revenue into profit. Out of every $100 of sales, about $11 is left as operating profit (operating margin of 10.6%), after a 37% gross margin on the products/services it sells. After all costs, taxes and interest, 5.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (1.0× equity), and is currently profitable.
LT.NS insider trading
Insider filings are available for US-listed companies only.
Common questions
What is LT.NS's intrinsic value?
TickerWorth's blended fair value for Larsen & Toubro Limited (LT.NS) is ₹3,706 per share, versus a market price of ₹3,683 (roughly at fair value).
Is LT.NS overvalued or undervalued?
On our blended fair value LT.NS looks in line with fair value at ₹3,683. This is an educational estimate, not advice.
What discount rate is used for LT.NS?
A WACC of 7.4% and a terminal growth rate of 2.5%.
Is Larsen & Toubro stock undervalued?
TickerWorth's fair value for Larsen & Toubro Limited (LT.NS) is ₹3,705.52 against a market price of ₹3,683.30. Our read: Priced within our range of ₹1,362.35 – ₹4,528.13. This is a model estimate, not investment advice.
Larsen & Toubro (LT.NS) DCF valuation and fair value
Our fair value for Larsen & Toubro Limited (LT.NS) is ₹3,705.52, built on a 7.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Larsen & Toubro stock?
Today's price implies revenue growth of 4.2% a year for 5 years; our model assumes 6.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of ₹3,683.30. A model estimate, not investment advice.
Larsen & Toubro (LT.NS) insider trading
We have no recent SEC Form 4 insider filings on file for Larsen & Toubro Limited (LT.NS). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.