Larsen & ToubroLTOUF 93 Forward PE Ratio is 26.48 as of Jul. 06, 2026. GuruFocus rates LTOUF with a GF Score™ of 93/100 and a GF Value™ of $44.91 (Fairly Valued). The stock has 5 warning signs investors should review. Among 638 Construction companies, Larsen & Toubro ranks worse than 83.07% on this metric.
Larsen & Toubro (OTCPK:LTOUF) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Larsen & Toubro Forward PE Ratio Related Terms
Larsen & Toubro Forward PE Ratio Historical Data
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The historical data trend for Larsen & Toubro's Forward PE Ratio 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.
Larsen & Toubro Forward PE Ratio Chart
Larsen & Toubro Annual Data
Trend
2017-03
2018-03
2019-03
2020-03
2021-03
2022-03
2023-03
2025-03
2026-03
Forward PE Ratio
22.99
22.99
19.08
15.85
17.76
18.90
20.96
22.84
20.91
Larsen & Toubro Quarterly Data
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-09
2023-12
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
18.76
22.99
26.11
25.25
20.12
22.99
23.31
23.75
19.46
19.08
20.04
16.69
15.48
15.85
15.75
19.65
17.18
17.76
17.64
22.27
17.95
18.90
19.49
21.79
21.65
20.96
29.76
28.57
27.50
22.84
23.75
28.12
24.97
20.91
LTOUF vs PWR, FIX, EME: Forward PE Ratio Comparison
For the Engineering & Construction subindustry, Larsen & Toubro's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Construction Industry
For the Construction industry and Industrials sector, Larsen & Toubro's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Larsen & Toubro's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Larsen & Toubro (LTOUF) has a Forward PE Ratio of 26.48 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Larsen & Toubro and its competitors. According to the industry distribution chart, Larsen & Toubro ranks #530 out of 638 companies in the Construction industry, placing it in the top 83.1%.
Is Larsen & Toubro's Forward PE Ratio too high?
Larsen & Toubro's current Forward PE Ratio is 26.48. The Construction industry median Forward PE Ratio is 14.13. Larsen & Toubro's value of 26.48 is 87.5% above this industry median. Based on the distribution chart, Larsen & Toubro ranks #530 out of 638 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Larsen & Toubro has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Larsen & Toubro's Forward PE Ratio compare to PWR and FIX?
According to the Construction industry distribution chart, Larsen & Toubro ranks #530 out of 638 companies for Forward PE Ratio. This places Larsen & Toubro in the lower half of its industry. The industry median Forward PE Ratio is 14.13. Larsen & Toubro's value of 26.48 is 87.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Construction company?
The median Forward PE Ratio among Construction companies is 14.13, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Larsen & Toubro's current Forward PE Ratio of 26.48 is 87.5% above 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Larsen & Toubro and its competitors. For the Construction industry, the median Forward PE Ratio is 14.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Larsen & Toubro's current Forward PE Ratio is 26.48. 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 $44.91, compared to a current price of $41.95 — trading 6.6% below its estimated fair value. The current Forward PE Ratio is 26.48 and 87.5% above the Construction industry median of 14.13. Larsen & Toubro's overall GF Score™ is 93/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Larsen & Toubro (LTOUF), the current Forward PE Ratio is 26.48 as of Jul. 06, 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 6.6% below its estimated GF Value™ of $44.91.
GuruFocus considers Larsen & Toubro to be Fairly Valued.
Key valuation signals for LTOUF:
Forward PE Ratio: 26.48
GF Value™: $44.91 vs. price of $41.95 (6.6% below fair value)
Industry Position: 87.5% above the Construction median (#530 of 638)
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.
93GF Score
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