Laureate Education, Inc. provides undergraduate, master’s, and doctoral degree programs in North America, Latin America, Europe, the Asia Pacific, Africa, and the Middle East. The company was founded in 1998 and is based in Baltimore, Maryland
LAUR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Laureate Education Inc. To summarize, we found that Laureate Education Inc ranked in the 85th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Laureate Education Inc ended up being:
The company's balance sheet shows it gets 47% of its capital from equity, and 53% of its capital from debt. Notably, its equity weight is greater than merely 17.58% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Laureate Education Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 4.05% of tickers in our DCF set.
Laureate Education Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive 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 LAUR, try NGVC, SUMR, GPX, HFFG, and JBSS.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Laureate Education, Inc. New York, May 18, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Laureate Education, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Hello, everyone, and thank you for joining us on today's call to discuss Laureate Education's first-quarter 2020 results and updates on our response to the COVID-19 pandemic and our previously announced strategic review process. Joining me on the call today are Eilif Serck-Hanssen, president and chief executive officer; and JJ Charhon, chief financial officer.