NIIT Limited, a skills and talent development company, provides training and development solutions to individuals, corporations, and institutions worldwide.
The last earnings update was 92 days ago.
Discounted Cash Flow Calculation for BSE:500304 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:500304 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
NIIT's earnings available for a low price, and how does
this compare to other companies in the same industry?
NIIT's earnings are expected to grow significantly at over 20% yearly.
NIIT's revenue is expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
NIIT's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Sapnesh Kumar Lalla has been Chief Executive Officer of NIIT Ltd. since August 1, 2017. Mr. Lalla served as Senior Vice President of Business Development - Corporate Learning Group at NIIT Ltd. since July 13, 2017 until August 1, 2017 and served as its Group President of Corporate Learning Group until July 13, 2017. Mr. Lalla served as Chief Executive of Learning Solutions for Enterprise at NIIT Ltd. Mr. Lalla is responsible for continuing the rapid growth and development of every area of NIIT's Learning Solutions for Enterprise business, throughout the geographies of North America, the United Kingdom and Europe. He is a Pioneer for NIIT in the US market. Mr. Lalla has enjoyed a long and accomplished tenure while at NIIT. Since joining NIIT in 1992, he began his career with it in the technical side of the business. Rising through the ranks, he relocated to the United States in 1996 as a Group Consultant of NIIT and served as its Business Manager since 1999. He served as a Director at NIIT Ltd.
Insufficient data for Sapnesh to compare compensation growth.
Sapnesh's remuneration is about average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the NIIT management team is about average.
Co-Founder & Chairman
Chief Executive Officer
Chief Financial Officer
Chief Information officer & Head of Technology Services - Organisation India
Compliance Officer & Company Secretary
VP and Head of Marketing & Sales
Chief Strategy Officer
Venkata Durga Ravi Patibanda
National Head of Delivery Operations & Senior VP
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the NIIT board of directors is about average.
Is NIIT Limited (BOM:500304) Expensive For A Reason? A Look At The Intrinsic Value
I am going to run you through how I calculated the intrinsic value of NIIT Limited (BOM:500304). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
NIIT Limited, a skills and talent development company, provides training and development solutions to individuals, corporations, and institutions worldwide. The company offers managed training services, such as custom curriculum design and content development, learning administration, learning delivery, strategic sourcing, learning technology, and advisory services; and various learning and talent development programs in the areas of technology, banking, finance and insurance, digital marketing, data sciences and analytics, professional life skills, business process excellence, management education, and multi-sectoral vocational skills. Its brands portfolio comprises the training.com, a learning platform for career programs, which are delivered live by industry experts; Talent Pipeline as a Service, a just-in-time job ready talent for organization; NIIT.tv, a digital learning platform; NIIT international of finance banking and insurance training limited designed for banking, insurance, and financial services; NIIT Imperia, which provides management programs in the areas of marketing, sales, finance, operations, HR, law, brand and advertising, international marketing and business, strategy, general management, digital marketing, taxation, and IT; and NIIT UNIQUA that offers outsourcing of training solutions for the BPM industry. The company’s brands portfolio also includes NIIT NGuru that offers various learning solutions for schools comprising interactive classrooms for teachers, as well as math lab, mobile science labs, IT wizard programs, and learning labs for students; and Practice Plus, a platform for assessment solution of learning, as well as Quick School, an education resource planning solution. Additionally, it provides StackRoute, which focuses on creating programmers; DigiNxt that addresses the opportunities for digital transformation needs of the IT industry. NIIT Limited was founded in 1981 and is headquartered in Gurugram, India.
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