LAUR
Laureate Education, Inc.
$38.76
Platform & Compounding FCF
65%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 3.7% below fair value
You pay
$38.76
Bear
$28.57
Fair
$40.24
Bull
$51.90
Bear
$28.57
-26.3%
6% stage 1 growth, 11% discount
Fair
$40.24
+3.8%
11% stage 1 growth, 11% discount
Bull
$51.90
+33.9%
14% stage 1 growth, 11% discount
Adjust Assumptions
10.7%
11.0%
3.0%
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
39%
Implied Market Multiple
21.9x
Market is pricing in (growth)
10.2%
vs 10.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$39.75
Divergence from AlphaVal
1%
Summary
Using a two-stage FCF DCF with 11% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $40.24 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions