Larsen & Toubro Limited (LT) — Fair Value Analysis

The YieldIQ model lands on a base-case fair value of ₹2,210.54 per share for Larsen & Toubro Limited, against a current market price of ₹3,900.6. The base case sits in a bear-to-bull range of — to —, computed by varying the discount rate and the long-run growth rate within plausible bands. The published margin of safety for the base case is -43.3%.

A margin of safety figure is a descriptive measurement, not a forecast. It states the distance, in percent, between the model's fair-value estimate and the live price. It does not say where the price will move; it only says how far apart the two numbers are today. The interpretation a reader applies — whether the gap matters, what discount rate they would prefer to use, which scenario they find most plausible — sits entirely with them and with their own SEBI-registered investment adviser.

Larsen & Toubro's moat is project-execution capability at scale, a domestic infrastructure order book that compounds with public capex, and an engineering services arm that has matured into a meaningful recurring-revenue contributor.

The model summarises Larsen & Toubro Limited's quality footprint as a moat label of —, a Piotroski F-score of — out of 9, and — accounting red flags detected on the latest filings. The moat label is a descriptive categorisation of the firm's economic moat — none, narrow, or wide — derived from return-on-capital history and competitive-position signals. The F-score is a rules-based accounting check, and the red-flag count surfaces any line-item discrepancies the model spotted in the most recent standalone and consolidated statements.

A fair-value number is only meaningful with its assumptions on the table. The base-case DCF for Larsen & Toubro Limited uses a weighted-average cost of capital of —, a terminal growth rate of —, and the model's revenue-growth input over the explicit-forecast window. Operating margin, tax rate and reinvestment intensity are seeded from the trailing five-year history and held flat through the explicit forecast unless a documented one-off requires adjustment.

Every one of those inputs is editable. The full analysis page hosts a reverse-DCF playground where a reader can move the WACC, terminal growth, revenue CAGR, operating margin, and tax-rate sliders and watch the fair value recompute in real time. The objective is for a reader to never accept the published number on faith — substitute your own assumptions, run the model, and see whether the resulting fair value still sits where the published one does.

Three peer companies in the same operating cohort, with their own YieldIQ DCF fair-value estimates and margins of safety as of the latest model run:

What is Larsen & Toubro Limited's fair value?

YieldIQ's discounted-cash-flow model estimates a base-case fair value of ₹2,210.54 per share for Larsen & Toubro Limited (LT). The estimate is updated daily from the latest financial filings and is published alongside a bear and bull scenario on the full analysis page.

What does the -43.3% margin of safety mean?

The margin of safety is the gap between the model's fair-value estimate and the current market price, expressed as a percent of the fair value. A positive number means the model's estimate sits above the current price; a negative number means the model's estimate sits below it. It is a descriptive distance, not a forecast of where the price will move.

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

The fair value is the output of a three-stage discounted-cash-flow model. Forecast free cash flows are discounted at the firm's weighted-average cost of capital, a terminal value is added using a long-run growth rate, and the result is divided by diluted share count. Every input — WACC, terminal growth, revenue CAGR, operating margin, tax rate — is editable on the full analysis page so a reader can substitute their own assumptions and rerun the model.

Is this investment advice?

No. YieldIQ is not a SEBI-registered investment adviser and nothing on this page is investment advice or a recommendation to transact in Larsen & Toubro Limited or any other security. The fair-value figure is a model output, published for educational and informational use. Readers should consult a SEBI-registered investment adviser before making any investment decision.