Students gather outside the locked doors of the bankrupt Meridian International Hotel School in central Melbourne November 6, 2009. Reuters/Mick Tsikas

Macquarie analysts have rated IDP Education as a valuable asset to the Australian market, giving the company a valuation ranging between $586 million to $687 million ahead of its listing on the ASX.

The value range makes up to 11.5 to 13 times of IDP's predicted earnings in the financial year 2016 before inclusion of interest or tax rates. IDP Education is owned by Education Australia, which comprises 38 Australian Universities, in a 50-50 partnership with online job portal, Seek.

IDP not only excels in offering student placement services, but also provides English language testing services as well as English language classes throughout South East Asia.

Macquarie Capital is currently managing IDP's Initial Public Offering (IPO). Its analysts claim that IDP is in great demand as far as people from foreign nations, particularly developing countries like China, Indonesia and India, looking to study, work and live in English-speaking nations such as Australia are concerned.

Besides Australia, IDP is grabbing focus around the world in countries like the U.S., the U.K., Canada and New Zealand. The cash conversion as recorded is over 100 percent, supporting high payout ratio when taken in combination with capital light organic growth opportunities.

IDP Education co-owns the International English Language Testing System, or IELTS, with British Council. More than 9,000 organisations around the world have accepted IELTS as their standard in assessing levels of English language proficiency.

Australian education company Navitas helped Macquarie in coming to a valid conclusion regarding IDP Education's premium market value.

Contact the writer at, or let us know what you think below.