LOPE
Grand Canyon Education, Inc.
$139.94
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 0.3% above fair value
You pay
$139.94
Bear
$114.93
Fair
$139.56
Bull
$164.18
Bear
$114.93
-17.9%
$8.15 × 14x P/E
Fair
$139.56
-0.3%
$8.15 × 17x P/E
Bull
$164.18
+17.3%
$8.15 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
17.2x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $142.50 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $139.56 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples