L&T Finance Ltd — PE Ratio & Valuation Analysis
Historical PE Ratio
| Year | EPS (₹) | Year-end Price | PE Ratio |
|---|---|---|---|
| 2025 | ₹10.57 | ₹316 | 29.9x |
| 2024 | ₹9.30 | ₹136 | 14.6x |
| 2023 | ₹6.54 | ₹165 | 25.2x |
| 2022 | ₹4.32 | ₹87 | 20.2x |
PE = Year-end closing price ÷ Diluted EPS. Source: NSE/BSE filings.
Understanding L&T Finance Ltd Valuation
L&T Finance Ltd (LTF) currently trades at 28.69x earnings. The Non Banking Financial Company (NBFC) sector average PE is 22.03x. LTF commands a premium, reflecting high growth expectations. Historically, LTF has traded at an average PE of 22.5x — it is currently above that level. Always evaluate PE alongside earnings growth (PEG ratio), return on equity, debt levels and business quality. A lower PE isn't always better. Educational data only — not investment advice.
L&T Finance Ltd — PE Ratio Analysis
L&T Finance Ltd is currently trading at a P/E ratio of 28.7x, compared to the Non Banking Financial Company (NBFC) industry average of 22.0x. At a 30.2% premium to peers, the market is pricing in higher growth expectations — investors are willing to pay more for each rupee of L&T Finance Ltd's earnings. Historically, L&T Finance Ltd has averaged a PE of 22.5x over the past 4 years. The current valuation is 27.7% above this historical mean, suggesting the stock is pricing in optimism about future earnings growth. L&T Finance Ltd's ROE of 10.8% should be considered alongside the valuation multiple when assessing fair value. PE ratios work best when combined with earnings growth trajectory, debt levels, and sector context.
Peer Comparison — Non Banking Financial Company (NBFC) Stocks
| Company | Price | PE Ratio | ROE | Mkt Cap |
|---|---|---|---|---|
BAJFINANCE | ₹924 | 34.7x | 19.2% | ₹6.35L Cr |
SHRIRAMFIN | ₹927 | 18.3x | 15.6% | ₹1.60L Cr |
MUTHOOTFIN | ₹3304 | 21.0x | 19.6% | ₹1.53L Cr |
CHOLAFIN | ₹1511 | 31.3x | 19.7% | ₹1.45L Cr |
SBICARD | ₹624 | 43.5x | 14.8% | ₹83.42K Cr |
YOUL&T Finance Ltd LTF | ₹278 | 28.7x | 10.8% | ₹77.42K Cr |
Top Non Banking Financial Company (NBFC) stocks by market cap. Source: NSE/BSE. Not investment advice.
Frequently Asked Questions — L&T Finance Ltd
What is L&T Finance Ltd PE ratio?
L&T Finance Ltd (LTF) currently has a PE ratio of 28.7x. This means investors are paying ₹29 for every ₹1 of annual earnings. The Non Banking Financial Company (NBFC) industry average PE is 22.0x.
Is L&T Finance Ltd overvalued or undervalued?
At 28.7x PE vs the sector average of 22.0x, L&T Finance Ltd trades at a premium. This is justified if the company continues to grow earnings faster than peers. It could be overvalued if growth slows.
What is L&T Finance Ltd's historical average PE ratio?
Based on 4 years of data, L&T Finance Ltd has historically traded at an average PE of 22.5x. The current PE of 28.7x is 28% above this historical average.
What does L&T Finance Ltd's PE ratio tell investors?
The PE ratio measures how much the market values L&T Finance Ltd relative to its current earnings. A higher PE than peers suggests growth expectations are priced in. L&T Finance Ltd's ROE of 10.8% and debt-to-equity of 3.72 are equally important inputs alongside PE for a complete valuation picture.
How does L&T Finance Ltd PE compare to Non Banking Financial Company (NBFC) sector?
L&T Finance Ltd's PE of 28.7x compares to the Non Banking Financial Company (NBFC) sector average of 22.0x — a premium of 30%. Sector PE comparisons are most useful when companies share similar business models, revenue visibility, and growth profiles.
More on L&T Finance Ltd
Data from NSE/BSE public filings. Educational purposes only. Bull Run is not SEBI-registered. Not investment advice.