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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Grand Canyon Education Inc. To summarize, we found that Grand Canyon Education Inc ranked in the 92th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2416.5%. 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 49.76; that's higher than 92.25% of US stocks in the Consumer Defensive sector that have positive free cash flow.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 15.67% 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 3%; for context, that number is higher than 44.18% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NATR, CYAN, BIG, SENEA, and BRFS can be thought of as valuation peers to LOPE, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
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With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter. One of these stocks was Grand Canyon Education Inc (NASDAQ:LOPE). Is LOPE a good stock […]
Grand Canyon Education, Inc. (NASDAQ:LOPE) CEO Brian E. Mueller sold 20,000 shares of the stock in a transaction dated Tuesday, December 1st. The stock was sold at an average price of $83.70, for a total transaction of $1,674,000.00. Following the transaction, the chief executive officer now directly owns 306,227 shares of the company’s stock, valued […]