| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 63.43 | -37 |
| Intrinsic value (DCF) | 42.27 | -58 |
| Graham-Dodd Method | 0.06 | -100 |
| Graham Formula | 0.10 | -100 |
Learning Technologies Group plc (LTG) is a leading provider of talent and learning solutions, serving corporate and government clients globally. Headquartered in London, LTG operates through its Software & Platforms and Content & Services divisions, offering a comprehensive suite of digital learning tools, including e-learning authoring platforms, talent management solutions, and workforce optimization software. The company's diverse portfolio includes Gomo, Rustici Software, PeopleFluent, Affirmity, and Open LMS, among others, catering to the growing demand for digital upskilling and compliance training. With a strong presence in the UK, US, Asia Pacific, and Europe, LTG capitalizes on the expanding corporate e-learning market, driven by remote work trends and the need for continuous employee development. As a key player in the Software - Application sector, LTG leverages its scalable SaaS model and strategic acquisitions to maintain competitive differentiation in the rapidly evolving EdTech landscape.
Learning Technologies Group presents a compelling investment case due to its diversified portfolio of digital learning solutions and strong recurring revenue model. The company operates in a high-growth sector, benefiting from increasing corporate investment in talent development and compliance training. However, investors should note the competitive pressures in the EdTech space, potential integration risks from acquisitions, and exposure to macroeconomic fluctuations affecting corporate training budgets. LTG's moderate debt levels and positive operating cash flow provide financial stability, but its diluted EPS of 0.036 GBp suggests modest profitability. The stock's beta of 1.186 indicates higher volatility than the market, which may appeal to growth-oriented investors comfortable with sector-specific risks.
Learning Technologies Group competes in the fragmented corporate e-learning market by offering an integrated suite of talent development tools through both organic growth and strategic acquisitions. The company's competitive advantage stems from its ability to provide end-to-end solutions combining content creation (Gomo), learning management (Open LMS), talent analytics (Watershed), and diversity compliance (Affirmity). This vertical integration differentiates LTG from point solution providers. However, the company faces intense competition from larger HR tech platforms that offer learning modules as part of broader HCM suites. LTG's focus on mid-market and enterprise clients provides some insulation from low-cost competitors but requires continuous innovation to maintain pricing power. The 2021 acquisition of GP Strategies expanded its professional training capabilities, though integration execution remains critical. With 56% of revenue from North America, LTG has stronger regional penetration than many European peers but less scale than US-based giants. Its technology stack's focus on interoperability (through Rustici's SCORM expertise) addresses a key client pain point in heterogeneous learning environments.