Home

Insights

Larsen & Toubro Ltd P/E Ratio

Larsen & Toubro Ltd P/E Ratio

download
stocks purchased

₹ 8.3 Cr

Volume transacted

stocks purchased

23.6 K

stocks traded

Image

Larsen & Toubro Ltd

NSE: LT

PE

34.9

Last updated : 23 May 04:47 AM

Key Highlights

    The P/E Ratio of Larsen & Toubro Ltd is 34.9 as of 23 May 04:47 AM .a1#The P/E Ratio of Larsen & Toubro Ltd changed from 21.8 on March 2019 to 29.1 on March 2023 . This represents a CAGR of 5.95% over 5 years. a1#The Latest Trading Price of Larsen & Toubro Ltd is ₹ 3460 as of 22 May 15:30 .a1#The PE Ratio of Infrastructure Developers & Operators Industry has changed from 26.7 to 36.7 in 5 years. This represents a CAGR of 6.57%a1# The PE Ratio of Automobile industry is 27.2. The PE Ratio of Finance industry is 13.6. The PE Ratio of Infrastructure Developers & Operators industry is 36.7. The PE Ratio of IT - Software industry is 27.9. The PE Ratio of Retail industry is 153.5. The PE Ratio of Textiles industry is 21.1. In 2023a1#The Market Cap of Larsen & Toubro Ltd changed from ₹ 194144 crore on March 2019 to ₹ 304251 crore on March 2023 . This represents a CAGR of 9.40% over 5 years. a1#The Revenue of Larsen & Toubro Ltd changed from ₹ 36547 crore to ₹ 68234 crore over 8 quarters. This represents a CAGR of 36.64% a1#The EBITDA of Larsen & Toubro Ltd changed from ₹ 6104 crore to ₹ 9788 crore over 8 quarters. This represents a CAGR of 26.63% a1#The Net Profit of Larsen & Toubro Ltd changed from ₹ 2293 crore to ₹ 5003 crore over 8 quarters. This represents a CAGR of 47.72% a1#The Dividend Payout of Larsen & Toubro Ltd changed from 33.7 % on March 2019 to 42.98 % on March 2023 . This represents a CAGR of 4.99% over 5 years. a1#

Open Demat Account

Lead form image

+91

50 Years

of Trust & Legacy

₹0 AMC

for First Year

₹0 Brokerage

on Delivery, Intraday, Currency and NSE F&O

*By signing up you agree to our terms & conditions

×

P/E Ratio Over Time

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share. P/E Ratio Formula P/E ratio = (CMP of share/ Earning per share) Types of Price to Earning Ratio 1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance. 2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

P/E Ratio Over Time

Period
Mar '1921.8
Mar '2011.9
Mar '2117.2
Mar '2228.6
Mar '2329.1

Fundamental Metrics

Market Cap

475,685 Cr

EPS

94.5

P/E Ratio (TTM) *

34.9

P/B Ratio (TTM) *

5.2

Day’s High

3473.7

Day’s Low

3435.25

DTE *

1.3

ROE *

15.1

52 Week High

3859.65

52 Week Low

2176.4

ROCE *

14.6

* All values are consolidated

* All values are consolidated

Image

Larsen & Toubro Ltd

NSE: LT

PRICE

3460.15

20.35(0.59%)

stock direction

Last updated : 22 May 15:30

×

PRICE

The current market price or CMP refers to the price at which the securities are trading in the share market. Current price in Over-the-counter costs: The following current price depends upon the bid price & the asking price when a financial asset is sold over-the-counter(OTC). Current Price in Bond Market: The current price of a bond is determined by measuring the actual interest rate against the bid-related interest rate. The par or the face value is then calculated to represent the remaining interest payments due which occur before the maturity of the bond.

Share price Over Time

1M

1Y

3Y

5Y

* All values are in Rupees

SWOT Analysis Of Larsen & Toubro Ltd

Strength

2

S

Weakness

1

W

Opportunity

1

O

Threats

1

T

BlinkX Score for Larsen & Toubro Ltd

Revenue

Profitability

Affordability

Liquidity

Dividend

Asset Value vs Market Value

Market Value

4,52,953

Asset Value

1,97,646

1.3 X

Value addition

* All values are in Rupees

PE Ratio Over Market Cap

Key Valuation Metric

Earnings

13,059 Cr

34.9 X

PE Ratio

Market Cap

₹452953Cr

PE Ratio

PS Ratio

PB Ratio

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share.


P/E Ratio Formula


P/E ratio = (CMP of share/ Earning per share)


Types of Price to Earning Ratio


1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance.
2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

PE Ratio

PS Ratio

PB Ratio

Earnings

13,059 Cr

34.9 X

PE Ratio

Market Cap

₹452953Cr

PE Ratio

PS Ratio

PB Ratio

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share.


P/E Ratio Formula


P/E ratio = (CMP of share/ Earning per share)


Types of Price to Earning Ratio


1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance.
2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

PE Ratio of Infrastructure Developers & Operators Industry over time

PE Ratio of Top Sectors

Larsen & Toubro Ltd PE Ratio Calculation

  • The Price-to-Earnings (PE) ratio, also known as the P/E Ratio, is a fundamental financial metric used to assess the valuation of a company's stock in relation to its earnings performance. For Larsen & Toubro Ltd, the PE Ratio is calculated as follows:

P/E Ratio

=

Market Capitalization

Net Income

  • Given the current market conditions, Larsen & Toubro Ltd's Share Price stands at 3460.15. The Earnings per Share (Diluted) for the trailing twelve months (TTM) ending in 2024-05-22T00:00:00 is 94.49. Substituting the values into the formula, PE Ratio becomes as follows: PE Ratio = 3460.15/ 94.49= 34.87.

P/E Ratio

=

Stock Price

Earning Per Share

  • This indicates that Larsen & Toubro Ltd's stock is trading at approximately 34.87 times its earnings per share for the trailing twelve months. Alternatively, the PE Ratio can also be computed using the company's overall financial performance: PE Ratio = Market Cap / Net Income. Where Market Cap represents the total market capitalization of the company, and Net Income signifies the total earnings after expenses and taxes.

Understanding Larsen & Toubro Ltd’s PE Ratio (BSE: LT)

    The Price-to-Earnings (PE) ratio, used to assess Larsen & Toubro Ltd's stock (BSE: LT), indicates how many years it would take for the company to earn back the stock price. If a company earns ₹2 per share annually and its stock trades at ₹30, the PE ratio is 15, signifying a 15-year payback period assuming steady earnings. Earnings fluctuate, affecting the payback period, Growing earnings shorten the recovery time while declining earnings extend it. Shareholders favor shorter payback periods, preferring lower PE stocks. Among stocks with the same PE ratio, faster-growing businesses are preferred. A company with losses makes the PE ratio meaningless. Peter Lynch introduced the PEG ratio to compare stocks with different growth rates, dividing the PE ratio by the growth rate. A company is considered fairly valued when its PE ratio matches its growth rate. The PE ratio, applicable across industries, measures stock valuation based on earnings power. It indicates how quickly an investment can be recouped. Unlike the PB ratio, which assesses valuation based on the balance sheet, the PE ratio focuses on earnings. Overall, the PE ratio provides insights into stock valuation, aligning with investors' preference for faster returns.

×

Market Cap Over Time

Market Cap or market capitalisation refers to metrics that are used to measure a company's size. It is defined as the total market value of a company's outstanding shares of stock. Formula of Market Cap: Market Capital = N * P Here, N for the outstanding shares P refers to the closing price of the company's shares. Types of Companies based on Market Cap: - Small-Cap stocks: Up to 500 Crore - Mid-Cap Stocks: From Rs.500 crore up to Rs.7,000 crore - Large-Cap Stocks: From Rs.7,000 crore up to Rs.20,000 crore

Market Cap Over Time

Period
Mar '19194145
Mar '20113273
Mar '21199215
Mar '22248332
Mar '23304252

* All values are a in crore

×

Revenue Over Time

Revenue term means the amount of money a company earns from its primary business activities such as the sales of its products & services. Types of Revenue: 1. Operating revenue: It refers to the income generated from the core business activities, which are sales of goods or services rendered. 2. Non-Operating revenue: It is the income generated from secondary sources unrelated to the primary business. Examples include rents, dividends, interest, and royalty fees. Formula for Revenue: The formula for calculating revenue is based on two goods & services: For goods: Revenue = Avg unit price x Number of Units sold For services: Revenue = Avg unit price x Number of Customers served.

Revenue Over Time

Period
Jun '2236548
Sep '2243501
Dec '2247281
Mar '2259076
Jun '2349028
Sep '2352157
Dec '2355966
Mar '2368235

* All values are a in crore

×

EBITDA Over Time

PBIDT stands for Profit Before Interest, Depreciation, and Taxes. It is a financial metric that measures a company's profitability before accounting for interest expenses, depreciation of assets, and taxes. Formula to calculate PBIDT: PBIDT = Net Income + Interest + Depreciation + Taxes or PBIDT = Operating Income + Depreciation + Taxes PBIDT vs EBITDA vs EBIT vs EBT: Here is a brief explanation of the differences: - PBIDT (Profit Before Interest, Depreciation, and Taxes) includes taxes in its calculation, unlike EBITDA. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) excludes taxes and interest, focusing on operational performance. - EBIT (Earnings Before Interest and Taxes) excludes interest and taxes, providing a measure of core operational profitability. - EBT (Earnings Before Taxes) includes all operating income but does not account for interest expenses. Conclusion: PBIDT, similar to EBITDA, is a measure of operational profitability but includes taxes in its calculation.

EBITDA Over Time

Period
Jun '226105
Sep '227101
Dec '227544
Mar '229095
Jun '237462
Sep '238173
Dec '238036
Mar '239788

* All values are a in crore

×

Net Profit Over Time

Net profit is the amount of money a company retains after accounting for all expenses, depreciation, interest, taxes, and other deductions. Net Profit formula is expressed as: Net Profit = Total Revenue - Total Expense Net Profit Margin Ratio: Net Profit Margin Ratio = Net Profit / Total Revenue

Net Profit Over Time

Period
Jun '222293
Sep '222819
Dec '223066
Mar '224447
Jun '233116
Sep '233856
Dec '233595
Mar '235004

* All values are a in crore

×

Dividend Payout Over Time

Dividend payout refers to the total dividends paid to shareholders relative to the company's earnings. It is a financial measure that determines the percentage of earnings paid out to existing shareholders as dividends. How to calculate Dividend Payout Ratio? The dividend payout ratio formula is as follows: DPR = Dividends paid / Net earnings With the dividend payout ratio, you can understand the company's priorities. It is an important metric that allows you to easily check DPR online.

Dividend Payout Over Time

Period
Mar '1934
Mar '2038
Mar '2143
Mar '2239
Mar '2343

* All values are a in %

About Larsen & Toubro Ltd

About Larsen & Toubro Ltd

    Larsen & Toubro Limited is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. The Company is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. Its heavy engineering division is organized into two independent companies: Heavy Engineering Independent Company and Ship Building Independent Company. Their Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business. During the year 2006-07, A Wall Street Journal survey featured L & T among Asia's 'Most Admired Companies' and ranked the company No.1 for quality of products and for overall reputation. In July 2010, the company won an offshore rig refurbishment contract from Oil and Natural Gas Corporation valued at Rs 376 crore. The other order is a USD 450 million EPCI project awarded to L&T Hydrocarbon's Upstream Business Group from ADMA-OPCO, a subsidiary of ADNOC and a major producer of Oil & Gas for the UAE. On 3 July 2015, L&T announced that it has successfully flagged off India's first Nuclear 700 MWe Steam Generator for Kakrapar nuclear power plant in Gujarat. At the time of announcement of Q1 June 2015 results on 31 July 2015, L&T said that the company won new orders worth Rs 26376 crore at consolidated level in Q1 June 2015. On 30 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited has bagged orders totalling close to Rs 4000 crore in the International market. On 20 June 2017, Larsen & Toubro announced the launch of a Floating Dock (FDN-2) designed and built for the Indian Navy at the company's greenfield shipyard at Kattupalli, near Chennai. Further the company, has acquired entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited on 10 April 2019. As at 31 March 2019, L&T Group comprises 110 subsidiaries, 8 associates, 27 joint venture companies and 31 joint operations. The Company acquired 3,27,60,229 equity shares of Mindtree Limited, pursuant to the Share Purchase Agreement. During March 2020, the COVID pandemic increased rapidly forcing Governments of most countries to enforce a lockdown of all activities.

Larsen & Toubro Ltd News Hub

News

Larsen & Toubro receives reaffirmation in credit rating for CP

Larsen & Toubro announced that CRISIL Ratings has reaffirmed 'CRISIL A1+' rating for comme...

Read more

22 May 2024 12:52

News

L&T Construction wins order from Institute of Neurosciences Kolkata

The Buildings & Factories (B&F) business vertical of Larsen & Toubro Construction (L&T) ha...

Read more

17 May 2024 12:06

News

L&T's buildings & factories vertical bags significant contract in Kolkata

The Health Business Unit has secured an order from the Institute of Neurosciences Kolkata,...

Read more

17 May 2024 13:56

News

Larsen & Toubro Ltd Slides 4.91%, S&P BSE Capital Goods index Shed 1.2%

Larsen & Toubro Ltd fell 4.91% today to trade at Rs 3314.15. The S&P BSE Capital Goods ind...

Read more

09 May 2024 09:30

News

Larsen & Toubro elevates Subramanian Sarma as Whole-time Director & President

Larsen & Toubro announced that Subramanian Sarma who has been Wholetime Director & Sr. EVP...

Read more

09 May 2024 12:35

News

Larsen & Toubro designates R Shankar Raman as President, Whole-time Director & CFO

Larsen & Toubro announced that R Shankar Raman who has been Sr.EVP, Whole time Director & ...

Read more

09 May 2024 12:38

Product Composition by Percentage (Revenue)

Document

Annual Reports

Annual Report 2023

dropdown
download

Credit Ratings

Credit Report 2024

dropdown
download

Concalls

July 2023

TranscriptPPT

Oct 2022

PPT

July 2022

PPT

May 2022

PPT

Jan 2022

PPT

Sep 2021

PPT

July 2021

TranscriptPPT

May 2021

PPT

Feb 2021

PPT

Nov 2020

PPT

Oct 2020

PPT

July 2020

TranscriptPPT

June 2020

TranscriptPPT

July 2023

TranscriptPPT

Oct 2022

PPT

July 2022

PPT

May 2022

PPT

Jan 2022

PPT

Sep 2021

PPT

July 2021

TranscriptPPT

May 2021

PPT

Feb 2021

PPT

Nov 2020

PPT

Oct 2020

PPT

July 2020

TranscriptPPT

June 2020

TranscriptPPT

FAQs for PE of Larsen & Toubro Ltd

What is Larsen & Toubro Ltd current share price?

The current market price of Larsen & Toubro Ltd as of May 23, 2024 is ₹3460.15.

Is Larsen & Toubro Ltd a good investment?

As per BlinkX Score Larsen & Toubro Ltd scores 46 in Revenue, 45 in Profitability. However it's advisable to conduct comprehensive research or seek advice from experts to evaluate whether it aligns with your investment objectives.

What are Larsen & Toubro Ltd's total net assets?

According to Larsen & Toubro Ltd's most recent financial filings, the company's net assets total ₹197646.2 Cr.

Is Larsen & Toubro Ltd making a profit or loss?

Larsen & Toubro Ltd's net Profit as of May 23, 2024 is close to ₹13,059 Cr.
up arrow
50yearstrust

Unlimited trading at just

Rs. 399

Rs. 199