Perdoceo Education Corporation (formerly Career Education Corporation) operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, on-ground, and hybrid learning program offerings in the United States. The company operates through four segments: Colorado Technical University (CTU), American InterContinental University (AIU), Career Colleges, and Transitional Group. The company was founded in 1994 and is based in Schaumburg, Illinois.
PRDO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for PERDOCEO EDUCATION Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that PERDOCEO EDUCATION Corp ranked in the 97th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 10981.67%; returns of such proportions should be viewed with some skepticism, though. As for the metrics that stood out in our discounted cash flow analysis of PERDOCEO EDUCATION Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 854.96; that's higher than 99.38% of US stocks in the Consumer Defensive sector that have positive free cash flow.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than only 18.63% of the free cash flow producing stocks we're observing.
PRDO'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 40.98% 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 PERDOCEO EDUCATION Corp? See HFFG, ACI, BJ, SIAF, and SENEA.
Perdoceo Education Corporation (PRDO) Q2 2020 Earnings Conference Call August 06, 2020 5:30 PM ET Company Participants Brooks Hamilton – Investor Relations Todd Nelson – President and Chief Executive Officer Ashish Ghia – Senior Vice President and Chief Financial Officer Conference Call Participants Alex Paris – Barrington Research Brendan Popson...
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