PRDO Share Price Performance
US$33.85
2.94 (9.51%)
63.1% undervalued intrinsic discount
US$91.64
Fair Value
Price US$33.85
J_Tyrader US$91.64
AnalystConsensusTarget US$44.00
Fair ValueUS$91.64
Share Pricen/a
Perdoceo Education Corporation Stock Price
- 2 Narratives written by author
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- 21 Fair Values set on narratives written by author
PRDO Community Narratives
J_
Fair Value
·Fair Value US$91.64 63.1% undervalued intrinsic discount
5/8/26 - Perdoceo Education Corporation
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1users have followed this narrative
AN
Fair Value
·Fair Value US$44 23.1% undervalued intrinsic discount
Enrollment Trends And Student Support Technologies Will Shape Future Education
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5/8/26 - Perdoceo Education Corporation
Perdoceo Education throws off a lot of cash and sits on a big cash cushion, yet the market values it far below what its own cash generation suggests. The big question is whether today’s growth holds up long enough to justify that gap, with near-term results as an early check.Read more
J_
US$91.64
63.1% undervalued intrinsic discount
Fair Value
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INTRINSIC VALUE (DCF) CALCULATION BREAKDOWN — NASDAQ:PRDO
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Target Fair Value: USD 91.64
Current Stock Price: USD 32.91
Market Assessment: 64.1% Undervalued / +178.5% Upside Potential
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1. MARKET METRICS RECONCILIATION
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* Undervaluation Formula:
(Fair Value - Current Price) / Fair Value
(91.64 - 32.91) / 91.64 = 0.6409 -> 64.1%
* Upside Potential Formula:
(Fair Value - Current Price) / Current Price
(91.64 - 32.91) / 32.91 = 1.7849 -> +178.5%
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2. DISCOUNT RATE / COST OF EQUITY (CAPM)
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* Formula: Risk-Free Rate + (Beta * Equity Risk Premium)
* Inputs: Risk-Free Rate = 4.25%
Beta = 1.10
ERP = 5.00%
* Calculation:
4.25% + (1.10 * 5.00%) = 4.25% + 5.50% = 9.75% (Rounded to 9.8%)
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3. 10-YEAR CASH FLOW FORECAST ARCHITECTURE
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* Base Year Free Cash Flow (FCF0): USD 220.92M (USD 3.5233 per share)
* Shares Outstanding: 62.70m (Market Cap 2.06B / Price 32.91)
* FCF Margin: 25.8%
* Growth Rate Fading Schedule:
- Year 1: +17.75% FCF USD 260.13M
- Years 2-10: Linear reduction from +17.75% down to +2.50%
- Year 10: +2.50% FCF USD 573.80M
- Year 11+: +2.50% (Terminal Perpetual Growth Rate)
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4. MATHEMATICAL STEPS TO INTRINSIC VALUE
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* Step A: Present Value of Discrete Cash Flows (Years 1 to 10)
PV_Cash_Flows = Sum [ FCF_t / (1 + 0.0975)^t ] for t = 1 to 10
PV_Cash_Flows = USD 2.55B
* Step B: Terminal Value (Gordon Growth Model at Year 10)
TV_10 = [ FCF_10 * (1 + 0.0250) ] / (0.0975 - 0.0250)
TV_10 = [ 573.80M * 1.0250 ] / 0.0725 = USD 8.11B
* Step C: Discount the Terminal Value to Present Day
PV_TV = 8.11B / (1 + 0.0975)^10 = 8.11B / 2.5354
PV_TV = USD 3.20B
* Step D: Equity Value and Fair Value per Share
Equity Value = 2.55B + 3.20B = USD 5.75B
Fair Value = 5.75B / 62.70m = USD 91.64
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5. FUTURE P/E MULTIPLE BLENDED BENCHMARK
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* Formula: Sum of (Multiple * Re-normalized Weight)
* Inputs: Current Multiple: 12.6x @ 20% Weight
* Calculation:
(12.6 * 0.20)
= 2.517
= 2.517 / 0.20 = 12.586x (Rounded to 12.6x)
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6. SENSITIVITY OF THE FAIR VALUE
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* Growth +14.7% -> 81.50 | +17.7% -> 91.64 | +20.7% -> 102.90
* Discount 8.75% -> 107.57 | 9.75% -> 91.64 | 10.75% -> 79.61
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Enrollment Trends And Student Support Technologies Will Shape Future Education
Perdoceo Education is leaning into online and flexible career programs, and it’s using new student-support tech to keep learners engaged and reduce dropouts. The big question is whether this momentum holds without relying on more takeovers, especially as competition and education rules can shift quickly.Read more
AN
US$44
23.1% undervalued intrinsic discount
Fair Value
Revenue
2.22% p.a.
Profit Margin
24.85%
Future PE
13.4x
Price in 2029
US$53.91
Trending Discussion
No trending discussion available.
Recently Updated Narratives
J_
5/8/26 - Perdoceo Education Corporation
Fair Value: US$91.64 63.1% undervalued intrinsic discount
1 fair value setusers have set this as their fair value
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
AN
PRDO: 2026 Earnings Outlook And Share Repurchases Will Support Future Upside
Fair Value: US$44 23.1% undervalued intrinsic discount
8 fair values setusers have set this as their fair value
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Snowflake Analysis
Perdoceo Education Corporation Key Details
About PRDO
- Founded
- 1994
- Employees
- 6000
- CEO
- WebsiteView website
Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. It operates through three segments: Colorado Technical University (CTU), The American InterContinental University System (AIUS), and University of St. Augustine for Health Sciences (USAHS). The CTU segment offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice. Its AIUS segment provides academic programs in the career-oriented disciplines of business studies, information technologies, education, and behavioral sciences. The USAHS segment offers graduate health sciences degrees in physical therapy, occupational therapy, speech language therapy, and nursing, as well as continuing education programs. The company also provides non-degree seeking and professional development programs. In addition, it operates intellipath, a learning platform, as well as a mobile application and two-way messaging platform. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is headquartered in Schaumburg, Illinois.
