PRDO
Perdoceo Education Corporation
$33.24
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 19.2% below fair value
You pay
$33.24
Bear
$33.88
Fair
$41.14
Bull
$48.40
Bear
$33.88
+1.9%
$2.42 × 14x P/E
Fair
$41.14
+23.8%
$2.42 × 17x P/E
Bull
$48.40
+45.6%
$2.42 × 20x P/E
Adjust Assumptions
17.0x
2.42$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
13.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (9 analysts)
$44.00
Divergence from AlphaVal
6%
Summary
Applying a 17x P/E to adjusted EPS of $2.42, the base-case value is $41.14 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