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NIITBOM:500304 +1.19%65 Return-on-Tangible-Equity is 3.83% as of Jun. 2026, which is 54% below its 10-year median of 8.24. GuruFocus rates BOM:500304 with a GF Score™ of 65/100 and a GF Value™ of ₹140.62 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 246 Education companies, NIIT ranks worse than 72.36% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. NIIT's annualized net income for the quarter that ended in Jun. 2026 was ₹324 Mil. NIIT's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹8,444 Mil. Therefore, NIIT's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 3.83%.
The historical rank and industry rank for NIIT's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500304'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.29 Med: 8.24 Max: 127.83
Current: 1.03
During the past 13 years, NIIT's highest Return-on-Tangible-Equity was 127.83%. The lowest was 0.29%. And the median was 8.24%.
BOM:500304's Return-on-Tangible-Equity is ranked worse than 72.36% of 246
companies
in the Education industry
Industry Median: 12.11
vs BOM:500304: 1.03
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
NIIT Return-on-Tangible-Equity Related Terms
NIIT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NIIT's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500304 vs EDU, TAL, LAUR: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, NIIT's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NIIT Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, NIIT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NIIT's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.83% mean?
NIIT (BOM:500304) has a Return-on-Tangible-Equity of 3.83% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NIIT and its competitors. This is 54% below median its historical median of 8.24. Over the past decade, NIIT's Return-on-Tangible-Equity has ranged from 0.29 to 127.83. According to the industry distribution chart, NIIT ranks #178 out of 246 companies in the Education industry, placing it in the top 72.4%.
Is NIIT's Return-on-Tangible-Equity too high?
NIIT's current Return-on-Tangible-Equity of 3.83% is 54% below median its 10-year median of 8.24. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 127.83. The Education industry median Return-on-Tangible-Equity is 12.11. NIIT's value of 3.83% is 68.4% below this industry median. Based on the distribution chart, NIIT ranks #178 out of 246 companies in the Education industry, which is below the industry midpoint. Overall, NIIT has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NIIT's Return-on-Tangible-Equity compare to EDU and TAL?
According to the Education industry distribution chart, NIIT ranks #178 out of 246 companies for Return-on-Tangible-Equity. This places NIIT in the lower half of its industry. The industry median Return-on-Tangible-Equity is 12.11. NIIT's value of 3.83% is 68.4% below this benchmark. Historically, NIIT's own Return-on-Tangible-Equity has ranged from 0.29 to 127.83 over the past decade. While the company's 10-year median is 8.24 vs. the industry median of 12.11, NIIT has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Education company?
The median Return-on-Tangible-Equity among Education companies is 12.11, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NIIT's current Return-on-Tangible-Equity of 3.83% is 68.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NIIT and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 12.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NIIT's current Return-on-Tangible-Equity is 3.83%, which is 54% below median its own 10-year median of 8.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NIIT stock overvalued right now?
Based on GuruFocus' analysis, NIIT (BOM:500304) is currently considered Possible Value Trap. The stock's GF Value™ is ₹140.62, compared to a current price of ₹96.69 — trading 31.2% below its estimated fair value. The current Return-on-Tangible-Equity is 3.83%, which is 54% below median its 10-year median of 8.24 and 68.4% below the Education industry median of 12.11. NIIT's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For NIIT (BOM:500304), the current Return-on-Tangible-Equity is 3.83% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NIIT (BOM:500304) Overvalued in 2026?
Based on GuruFocus' analysis, NIIT stock appears to be undervalued.
The current stock price of ₹96.69 is trading 31.2% below its estimated GF Value™ of ₹140.62.
GuruFocus considers NIIT to be Possible Value Trap.
Key valuation signals for BOM:500304:
Return-on-Tangible-Equity: 3.83% (54% below median its 10-year median of 8.24)
GF Value™: ₹140.62 vs. price of ₹96.69 (31.2% below fair value)
Industry Position: 68.4% below the Education median (#178 of 246)
No single metric tells the full story. See the BOM:500304 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NIIT Ltd provides multi-disciplinary learning management and training delivery solutions to corporations, institutions, and individuals globally. Its business is divided into a Corporate learning group, a Skills and Careers group, and a School learning group. The activities of these divisions include training outsourcing to companies in North America and Europe, courses related to IT, BFSI, KPO, management education, multi-vocational skills, digital media marketing, professional life skills, teaching, and education to schools in India. Geographically, the company generates the majority of its revenue from India.
65GF Score
Get the complete analysis for BOM:500304
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