As of June 14, 2025, Aberdeen New India Investment Trust PLC's estimated intrinsic value ranges from $731.46 to $2468.59 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2468.59 | +207.8% |
| Discounted Cash Flow (5Y) | $2282.06 | +184.5% |
| Dividend Discount Model (Multi-Stage) | $1486.43 | +85.3% |
| Dividend Discount Model (Stable) | $1960.96 | +144.5% |
| Earnings Power Value | $731.46 | -8.8% |
Is Aberdeen New India Investment Trust PLC (ANII.L) undervalued or overvalued?
With the current market price at $802.00, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Aberdeen New India Investment Trust PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.12 | 1.16 |
| Cost of equity | 10.7% | 13.1% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 7.5% | 10.1% |
| Debt/Equity ratio | 0.07 | 0.07 |
| After-tax WACC | 10.2% | 12.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $2,282 | $1,060M | 62.3% |
| 10-Year Growth | $2,469 | $1,145M | 38.4% |
| 5-Year EBITDA | $1,494 | $697M | 42.6% |
| 10-Year EBITDA | $1,941 | $903M | 21.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $39M |
| Discount Rate (WACC) | 12.5% - 10.2% |
| Enterprise Value | $312M - $380M |
| Net Debt | $10M |
| Equity Value | $302M - $370M |
| Outstanding Shares | 0M |
| Fair Value | $658 - $805 |
| Selected Fair Value | $731.46 |
| Metric | Value |
|---|---|
| Market Capitalization | $369M |
| Enterprise Value | $379M |
| Trailing P/E | 2.99 |
| Forward P/E | 3.69 |
| Trailing EV/EBITDA | 3.75 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.07 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $740.58 |
| Discounted Cash Flow (5Y) | 25% | $570.52 |
| Dividend Discount Model (Multi-Stage) | 20% | $297.29 |
| Dividend Discount Model (Stable) | 15% | $294.14 |
| Earnings Power Value | 10% | $73.15 |
| Weighted Average | 100% | $1975.67 |
Based on our comprehensive valuation analysis, Aberdeen New India Investment Trust PLC's weighted average intrinsic value is $1975.67, which is approximately 146.3% above the current market price of $802.00.
Key investment considerations:
Given these factors, we believe Aberdeen New India Investment Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.