Larsen & Toubro Limited
Financial ratios & Valuation

Forward Multiples (2026 – 2027)

20262027
Price/Earnings ratio
0.280.25
Price/Sales ratio
N/AN/A
Earnings per Share (EPS)
$142.94$162.64

Historical Multiples (2015 – 2024)

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TTM Median
Valuation Ratios
Price/Earnings ratio
33.6833.0534.6425.1722.3315.3714.7523.7825.6136.1139.6222.33
Price/Sales ratio
1.791.661.941.571.421.011.271.321.462.092.241.42
Price/Book Value ratio
3.923.824.163.333.182.202.252.503.005.466.003.18
Price/Cash Flow ratio
-239.94-52.1133.57-18.49-42.1621.937.4810.7611.7725.81146.37-42.16
Price/Free Cash Flow ratio
-21.12-19.8164.28-14.37-22.0945.078.1212.8414.3934.30146.36-22.09
Price/Earnings Growth ratio
-10.91-2.900.811.151.070.650.24-0.551.235.020.000.65
Dividend Yield
0.82%0.89%0.81%1.05%1.12%3.10%2.13%1.22%1.15%0.89%0.00%3.10%
Profitability Indicator Ratios
Gross Profit Margin
29.38%30.56%28.14%29.49%28.64%32.53%35.52%35.93%36.39%37.29%23.34%32.53%
Operating Profit Margin
8.39%9.33%8.27%10.13%11.07%11.28%12.03%11.25%11.03%10.39%9.14%11.28%
Pretax Profit Margin
8.06%7.98%8.25%9.87%10.47%9.30%9.09%9.25%9.33%9.11%8.96%9.30%
Net Profit Margin
5.32%5.02%5.61%6.25%6.40%6.61%8.61%5.56%5.71%5.79%5.66%6.61%
Effective Tax Rate
31.64%31.51%22.57%27.48%29.78%24.29%32.77%29.26%26.20%24.11%24.61%24.29%
Return on Assets
2.45%2.23%2.84%3.00%3.19%3.09%3.72%2.70%3.16%3.84%3.79%3.19%
Return On Equity
11.64%11.57%12.03%13.24%14.27%14.31%15.26%10.52%11.72%15.12%14.55%14.27%
Return on Capital Employed
6.44%6.84%7.25%8.80%10.66%9.96%9.30%10.90%12.02%14.36%13.54%10.66%
Liquidity Ratios
Current Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1.17N/A
Quick Ratio
1.131.121.311.201.191.221.371.261.321.191.131.22
Cash ratio
0.060.050.040.060.040.070.090.080.100.060.050.04
Days of Sales Outstanding
302.47218.82213.12234.89218.57234.16246.14233.40306.54178.80N/A234.16
Days of Inventory outstanding
37.6327.8219.5321.2823.5821.5424.5021.7421.3717.1114.5021.54
Operating Cycle
340.11246.65232.66256.18242.15255.71270.64255.15327.92195.9114.50255.71
Days of Payables Outstanding
127.36140.13142.97165.96158.06163.61192.58187.97155.82137.74102.77163.61
Cash Conversion Cycle
212.75106.5189.6890.2284.0892.0978.0667.17172.0958.16-88.2792.09
Debt Ratios
Debt Ratio
0.450.380.440.430.440.450.420.380.350.330.340.45
Debt Equity Ratio
2.182.001.871.932.012.111.741.491.321.321.382.11
Long-term Debt to Capitalization
0.610.580.570.560.540.550.510.420.400.390.360.55
Total Debt to Capitalization
0.680.660.650.650.660.670.630.590.570.560.580.67
Interest Coverage Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A6.10N/A
Cash Flow to Debt Ratio
-0.00-0.030.06-0.09-0.030.040.170.150.190.160.02-0.03
Company Equity Multiplier
4.745.174.224.404.474.614.103.883.693.933.994.61
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
-0.00-0.030.05-0.08-0.030.040.160.120.120.080.01-0.03
Free Cash Flow / Operating Cash Flow Ratio
11.352.630.521.281.900.480.920.830.810.7511
Cash Flow Coverage Ratio
-0.00-0.030.06-0.09-0.030.040.170.150.190.160.02-0.03
Short Term Coverage Ratio
-0.02-0.110.23-0.28-0.090.110.450.300.390.310.05-0.09
Dividend Payout Ratio
27.76%29.70%28.16%26.60%25.18%47.66%31.51%29.16%29.52%32.29%N/A47.66%