PRDO
Perdoceo Education Corporation
$33.98
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 20.9% below fair value
You pay
$33.98
Bear
$35.37
Fair
$42.96
Bull
$50.54
Bear
$35.37
+4.1%
$2.51 × 14x P/E
Fair
$42.96
+26.4%
$2.51 × 17x P/E
Bull
$50.54
+48.7%
$2.51 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
13.5x
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 $44.00 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $42.96 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