As of May 27, 2025, Aberdeen New India Investment Trust PLC's estimated intrinsic value ranges from $711.67 to $2401.63 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2401.63 | +204.0% |
| Discounted Cash Flow (5Y) | $2220.15 | +181.0% |
| Dividend Discount Model (Multi-Stage) | $1447.53 | +83.2% |
| Dividend Discount Model (Stable) | $1909.40 | +141.7% |
| Earnings Power Value | $711.67 | -9.9% |
Is Aberdeen New India Investment Trust PLC (ANII.L) undervalued or overvalued?
With the current market price at $790.00, 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 | 1.15 |
| 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 | $2,220 | $1,061M | 62.3% |
| 10-Year Growth | $2,402 | $1,146M | 38.5% |
| 5-Year EBITDA | $1,444 | $693M | 42.3% |
| 10-Year EBITDA | $1,882 | $901M | 21.7% |
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 | $313M - $381M |
| Net Debt | $10M |
| Equity Value | $303M - $371M |
| Outstanding Shares | 0M |
| Fair Value | $640 - $784 |
| Selected Fair Value | $711.67 |
| Metric | Value |
|---|---|
| Market Capitalization | $374M |
| Enterprise Value | $384M |
| Trailing P/E | 3.03 |
| Forward P/E | 3.74 |
| Trailing EV/EBITDA | 3.70 |
| 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% | $720.49 |
| Discounted Cash Flow (5Y) | 25% | $555.04 |
| Dividend Discount Model (Multi-Stage) | 20% | $289.51 |
| Dividend Discount Model (Stable) | 15% | $286.41 |
| Earnings Power Value | 10% | $71.17 |
| Weighted Average | 100% | $1922.61 |
Based on our comprehensive valuation analysis, Aberdeen New India Investment Trust PLC's weighted average intrinsic value is $1922.61, which is approximately 143.4% above the current market price of $790.00.
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.