Larsen & ToubroLTOUF 95 ROE % is 19.49% as of Mar. 2026, which is 31% above its 10-year median of 14.83. GuruFocus rates LTOUF with a GF Score™ of 95/100 and a GF Value™ of $44.69 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,743 Construction companies, Larsen & Toubro ranks better than 78.31% on this metric.
The historical rank and industry rank for Larsen & Toubro's ROE % or its related term are showing as below:
LTOUF'
s ROE % Range Over the Past 10 Years
Min: 10.95 Med: 14.83 Max: 16.34
Current: 15.65
During the past 13 years, Larsen & Toubro's highest ROE % was 16.34%. The lowest was 10.95%. And the median was 14.83%.
LTOUF's ROE % is ranked better than 78.31% of 1743
companies
in the Construction industry
Industry Median: 6.69
vs LTOUF: 15.65
Larsen & Toubro (OTCPK:LTOUF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Larsen & Toubro ROE % Related Terms
Larsen & Toubro ROE % Historical Data
* Premium members only.
The historical data trend for Larsen & Toubro's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Construction Industry
For the Construction industry and Industrials sector, Larsen & Toubro's ROE % distribution charts can be found below:
* The bar in red indicates where Larsen & Toubro's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Larsen & Toubro (LTOUF) has a ROE % of 19.49% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Larsen & Toubro and its competitors. This is 31% above median its historical median of 14.83. Over the past decade, Larsen & Toubro's ROE % has ranged from 10.95 to 16.34. According to the industry distribution chart, Larsen & Toubro ranks #378 out of 1743 companies in the Construction industry, placing it in the top 21.7%.
Is Larsen & Toubro's ROE % too high?
Larsen & Toubro's current ROE % of 19.49% is 31% above median its 10-year median of 14.83. Over the past 10 years, this metric has ranged from a low of 10.95 to a high of 16.34. The Construction industry median ROE % is 6.69. Larsen & Toubro's value of 19.49% is 191.3% above this industry median. Based on the distribution chart, Larsen & Toubro ranks #378 out of 1743 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Larsen & Toubro ranks #378 out of 1743 companies for ROE %. This places Larsen & Toubro in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 6.69. Larsen & Toubro's value of 19.49% is 191.3% above this benchmark. Historically, Larsen & Toubro's own ROE % has ranged from 10.95 to 16.34 over the past decade. While the company's 10-year median is 14.83 vs. the industry median of 6.69, Larsen & Toubro has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Construction company?
The median ROE % among Construction companies is 6.69, based on 1,743 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Larsen & Toubro's current ROE % of 19.49% is 191.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Larsen & Toubro and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Larsen & Toubro's current ROE % is 19.49%, which is 31% above median its own 10-year median of 14.83. 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 ROE % is 19.49%, which is 31% above median its 10-year median of 14.83 and 191.3% above the Construction industry median of 6.69. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Larsen & Toubro (LTOUF), the current ROE % is 19.49% as of Mar. 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:
ROE %: 19.49% (31% above median its 10-year median of 14.83)
GF Value™: $44.69 vs. price of $41.95 (6.1% below fair value)
Industry Position: 191.3% above the Construction median (#378 of 1743)
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.
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