Larsen Toubro Valuation
| LTOUF Stock | USD 41.38 0.00 0.00% |
At this time, the firm appears to be overvalued. Larsen Toubro Limited secures a last-minute Real Value of $35.15 per share. The latest price of the firm is $41.38. Our model forecasts the value of Larsen Toubro Limited from analyzing the firm fundamentals such as Return On Equity of 0.13, profit margin of 0.06 %, and Current Valuation of 46.39 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
Please note that Larsen Toubro's price fluctuation is very steady at this time. Calculation of the real value of Larsen Toubro Limited is based on 3 months time horizon. Increasing Larsen Toubro's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Larsen Toubro Limited is useful when determining the fair value of the Larsen pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of Larsen Toubro. Since Larsen Toubro is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Larsen Pink Sheet. However, Larsen Toubro's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 41.38 | Real 35.15 | Hype 41.38 | Naive 44.0 |
The real value of Larsen Pink Sheet, also known as its intrinsic value, is the underlying worth of Larsen Toubro Limited Company, which is reflected in its stock price. It is based on Larsen Toubro's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Larsen Toubro's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Larsen Toubro's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Larsen Toubro Limited helps investors to forecast how Larsen pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Larsen Toubro more accurately as focusing exclusively on Larsen Toubro's fundamentals will not take into account other important factors: Larsen Toubro Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Larsen Toubro's current stock value. Our valuation model uses many indicators to compare Larsen Toubro value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Larsen Toubro competition to find correlations between indicators driving Larsen Toubro's intrinsic value. More Info.Larsen Toubro Limited is currently regarded as number one stock in price to earning category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about 0.17 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Larsen Toubro Limited is roughly 6.01 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Larsen Toubro by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Larsen Toubro's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Larsen Toubro's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Larsen Toubro's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Larsen Toubro and how it compares across the competition.
About Larsen Toubro Valuation
The pink sheet valuation mechanism determines the current worth of Larsen Toubro Limited on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Larsen Toubro Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Larsen Toubro Limited based exclusively on its fundamental and basic technical indicators. By analyzing Larsen Toubro's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Larsen Toubro's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Larsen Toubro. We calculate exposure to Larsen Toubro's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Larsen Toubro's related companies.Larsen Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The company was founded in 1938 and is headquartered in Mumbai, India. Larsen Toubro operates under Engineering Construction classification in the United States and is traded on OTC Exchange. It employs 49921 people.
8 Steps to conduct Larsen Toubro's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Larsen Toubro's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Larsen Toubro's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Larsen Toubro's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Larsen Toubro's revenue streams: Identify Larsen Toubro's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Larsen Toubro's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Larsen Toubro's growth potential: Evaluate Larsen Toubro's management, business model, and growth potential.
- Determine Larsen Toubro's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Larsen Toubro's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Larsen Toubro represents a small ownership stake in the entity. As a stockholder of Larsen, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Larsen Toubro Dividends Analysis For Valuation
Please note that Larsen Toubro has scaled down on payment of dividends at this time.
There are various types of dividends Larsen Toubro can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Larsen shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Larsen Toubro Limited directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Larsen pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Larsen Toubro by the value of the dividends paid out.
Larsen Toubro Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Larsen Toubro does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.4 B | |
| Quarterly Earnings Growth Y O Y | 0.242 | |
| Forward Price Earnings | 21.2766 | |
| Retained Earnings | 708.5 B |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Larsen Toubro Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Complementary Tools for Larsen Pink Sheet analysis
When running Larsen Toubro's price analysis, check to measure Larsen Toubro's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Larsen Toubro is operating at the current time. Most of Larsen Toubro's value examination focuses on studying past and present price action to predict the probability of Larsen Toubro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Larsen Toubro's price. Additionally, you may evaluate how the addition of Larsen Toubro to your portfolios can decrease your overall portfolio volatility.
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