ARCE's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 0.21 -- higher than just 4.51% of US-listed equities with positive expected earnings growth.
Arco Platform Ltd's stock had its IPO on September 26, 2018, making it an older stock than merely 4.18% of US equities in our set.
The price/operating cash flow metric for Arco Platform Ltd is higher than 94.92% of stocks in our set with a positive cash flow.
If you're looking for stocks that are quantitatively similar to Arco Platform Ltd, a group of peers worth examining would be IDCC, GLDD, TPC, HLX, and TV.
Arco Platform Limited - Class A Common Shares (ARCE) Company Bio
Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company’s curriculum solutions provide educational content from basic to secondary education K-12 curriculum in printed and digital formats delivered through its platform. As of March 31, 2018, it had a network consisted of 1,140 partner schools and 405,814 enrolled students. The company’s activities also comprise editing, publishing, advertising, and sale of educational content for private schools. It serves students, teachers, administrators, and parents. The company was founded in 2004 and is based in São Paulo, Brazil.
ARCE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ARCE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Arco Platform Ltd ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. As for the metrics that stood out in our discounted cash flow analysis of Arco Platform Ltd, consider:
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 6.37% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Arco Platform Ltd experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ARCE, try ONE, LND, MGPI, FMX, and LRN.
Arco Platform (ARCE) -5% prices public offering of 2.5M common shares at $44.80.Underwriters have an option to purchase up to 375,000 of additional common shares. Net proceeds will be used to fund future acquisitions or investments in complementary businesses, products or technologies. Closing date is September 11.Previously: Arco Platform announces public offering of...
Arco Platform (ARCE) expands its portfolio with an acquisition of Escola de Inteligência Cursos Educacionais ((EI)), social-emotional learning ((SEL)) solution provider to K-12 students in Brazil. The payment terms include:60% of EI’s shares valued at R$288M, with R$200M to be paid at closing and the remaining R$88M in 2Q21. This implies an EV of...
In this article you are going to find out whether hedge funds think Arco Platform Limited (NASDAQ:ARCE) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
SÃO PAULO, Brazil, June 03, 2020 (GLOBE NEWSWIRE) -- Arco Platform Limited, or Arco (ARCE), announced today that it priced an underwritten public offering of 5,563,203 Class A common shares offered by General Atlantic Arco (Bermuda), L.P. and Alfaco Holding Inc. (the “Selling Shareholders”), at a public offering price of US$47.70. Arco will not receive any proceeds from the sale of Class A common shares by the Selling Shareholders. Neither Arco nor any of its other shareholders, including its founding shareholders and members of management, are selling Class A common shares in this offering.
SÃO PAULO, Brazil, June 02, 2020 (GLOBE NEWSWIRE) -- Arco Platform Limited, or Arco (ARCE), announced today the commencement of an underwritten public offering of 5,563,203 Class A common shares to be offered by General Atlantic Arco (Bermuda), L.P and Alfaco Holding Inc. Arco will not receive any proceeds from the sale of Class A common shares by the Selling Shareholders. Neither Arco nor any other of its other shareholders, including its founding shareholders and members of management, are selling Class A common shares in this offering.