Grand Canyon Education provides postsecondary education services in the United States and Canada, including graduate and undergraduate degree programs in the fields of education, healthcare, business, teaching, nursing, professional, and liberal arts. The company was founded in 1949 and is based in Phoenix, Arizona.
LOPE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Grand Canyon Education Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Grand Canyon Education Inc ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 152.5%. The most interesting components of our discounted cash flow analysis for Grand Canyon Education Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 32.84 -- which is good for besting 89.88% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than just 9.74% of the free cash flow producing stocks we're observing.
LOPE's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 53.22% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Grand Canyon Education Inc? See UL, TSN, VGR, FARM, and TAP.
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NEW YORK, NY / ACCESSWIRE / June 5, 2020 / Jakubowitz Law announces that securities fraud class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies who purchased ...
LOS ANGELES, CA / ACCESSWIRE / June 5, 2020 / The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class-action lawsuit against Grand Canyon Education, Inc. ("Grand Canyon" or "the Company") (NASDAQ:LOPE) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between January 5, 2018 and January 27, 2020, inclusive (the ''Class Period'') are encouraged to contact the firm before July 13, 2020.
NEW YORK, NY / ACCESSWIRE / June 5, 2020 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. Shareholders interested ...