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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for PERDOCEO EDUCATION Corp. 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 11389.83%; returns of such proportions should be viewed with some skepticism, though. The most interesting components of our discounted cash flow analysis for PERDOCEO EDUCATION Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 854.96; that's higher than 99.37% of US stocks in the Consumer Defensive sector that have positive free cash flow.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately only 18.56% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 40.86% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HFFG, ACI, SENEA, NTCO, and SIAF can be thought of as valuation peers to PRDO, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
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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