FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Larsen & Toubro FCF Yield % Related Terms
Larsen & Toubro FCF Yield % Historical Data
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The historical data trend for Larsen & Toubro's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Engineering & Construction subindustry, Larsen & Toubro's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Larsen & Toubro FCF Yield % vs Construction Industry
For the Construction industry and Industrials sector, Larsen & Toubro's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Larsen & Toubro's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Larsen & Toubro (LTOUF) has a FCF Yield % of 2.06 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Larsen & Toubro and its competitors. According to the industry distribution chart, Larsen & Toubro ranks #913 out of 1787 companies in the Construction industry, placing it in the top 51.1%.
Is Larsen & Toubro's FCF Yield % too high?
Larsen & Toubro's current FCF Yield % is 2.06. The Construction industry median FCF Yield % is 2.24. Larsen & Toubro's value of 2.06 is 8% below this industry median. Based on the distribution chart, Larsen & Toubro ranks #913 out of 1787 companies in the Construction industry, which is below the industry midpoint. Overall, Larsen & Toubro has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Larsen & Toubro's FCF Yield % compare to PWR and FIX?
According to the Construction industry distribution chart, Larsen & Toubro ranks #913 out of 1787 companies for FCF Yield %. This places Larsen & Toubro in the lower half of its industry. The industry median FCF Yield % is 2.24. Larsen & Toubro's value of 2.06 is 8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Construction company?
The median FCF Yield % among Construction companies is 2.24, based on 1,787 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Larsen & Toubro's current FCF Yield % of 2.06 is 8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Larsen & Toubro and its competitors. For the Construction industry, the median FCF Yield % is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Larsen & Toubro's current FCF Yield % is 2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Larsen & Toubro stock overvalued right now?
Based on GuruFocus' analysis, Larsen & Toubro (LTOUF) is currently considered Fairly Valued. The stock's GF Value™ is $44.69, compared to a current price of $41.95 — trading 6.1% below its estimated fair value. The current FCF Yield % is 2.06 and 8% below the Construction industry median of 2.24. Larsen & Toubro's overall GF Score™ is 95/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Larsen & Toubro (LTOUF), the current FCF Yield % is 2.06 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Larsen & Toubro (LTOUF) Overvalued in 2026?
Based on GuruFocus' analysis, Larsen & Toubro stock appears to be undervalued.
The current stock price of $41.95 is trading 6.1% below its estimated GF Value™ of $44.69.
GuruFocus considers Larsen & Toubro to be Fairly Valued.
Key valuation signals for LTOUF:
FCF Yield %: 2.06
GF Value™: $44.69 vs. price of $41.95 (6.1% below fair value)
Industry Position: 8% below the Construction median (#913 of 1787)
No single metric tells the full story. See the LTOUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Larsen & Toubro Ltd is engaged in core, high-impact sectors of the economy, and its integrated capabilities span the entire spectrum of design to delivery. The company's operating segments are: Infrastructure projects, Energy projects, Hi-Tech Manufacturing, and other segments. The majority of its revenue is generated from the Infrastructure projects segment, which comprises engineering and construction of buildings and factories, transportation infrastructure, heavy civil infrastructure, power transmission & distribution, renewables, water & effluent treatment, and minerals and metals. Geographically, the group generates maximum revenue from its operations in India.
95GF Score
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