We’ve recently updated our valuation analysis.

IDP Education Valuation

Is IEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IEL?

Other financial metrics that can be useful for relative valuation.

IEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.6x
Enterprise Value/EBITDA45.3x
PEG Ratio3.7x

Price to Earnings Ratio vs Peers

How does IEL's PE Ratio compare to its peers?

The above table shows the PE ratio for IEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.6x
GEM G8 Education
25.8x18.0%AU$792.4m
TLC Lottery
30.2x7.9%AU$10.5b
DMP Domino's Pizza Enterprises
35.8x15.6%AU$5.7b
IVC InvoCare
78.5x27.0%AU$1.6b
IEL IDP Education
74x20.2%AU$7.6b

Price-To-Earnings vs Peers: IEL is expensive based on its Price-To-Earnings Ratio (74x) compared to the peer average (42.6x).


Price to Earnings Ratio vs Industry

How does IEL's PE Ratio compare vs other companies in the Global Consumer Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.8%
n/an/an/a

Price-To-Earnings vs Industry: IEL is expensive based on its Price-To-Earnings Ratio (74x) compared to the Global Consumer Services industry average (17.9x)


Price to Earnings Ratio vs Fair Ratio

What is IEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio74x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: IEL is expensive based on its Price-To-Earnings Ratio (74x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).


Share Price vs Fair Value

What is the Fair Price of IEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IEL (A$27.28) is trading above our estimate of fair value (A$21.33)

Significantly Below Fair Value: IEL is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$27.28
AU$32.50
+19.1%
14.2%AU$38.00AU$21.20n/a13
Dec ’23AU$29.35
AU$32.52
+10.8%
14.2%AU$38.00AU$21.20n/a13
Nov ’23AU$29.38
AU$32.63
+11.1%
14.3%AU$38.00AU$21.20n/a13
Oct ’23AU$26.47
AU$32.10
+21.3%
14.4%AU$36.15AU$21.20n/a12
Sep ’23AU$28.10
AU$32.70
+16.4%
12.1%AU$36.00AU$21.20n/a11
Aug ’23AU$27.66
AU$31.60
+14.2%
14.5%AU$38.80AU$20.00n/a11
Jul ’23AU$24.58
AU$34.29
+39.5%
7.3%AU$38.80AU$30.48n/a9
Jun ’23AU$24.29
AU$34.44
+41.8%
7.4%AU$38.80AU$30.48n/a9
May ’23AU$26.87
AU$35.72
+32.9%
3.9%AU$38.80AU$33.24n/a9
Apr ’23AU$30.05
AU$36.24
+20.6%
5.4%AU$40.20AU$33.24n/a9
Mar ’23AU$28.31
AU$36.19
+27.8%
5.4%AU$40.20AU$33.24n/a9
Feb ’23AU$29.63
AU$36.28
+22.4%
8.3%AU$40.25AU$32.00n/a9
Jan ’23AU$34.65
AU$36.32
+4.8%
8.3%AU$40.25AU$32.00n/a9
Dec ’22AU$32.88
AU$35.44
+7.8%
8.0%AU$40.20AU$32.00AU$29.357
Nov ’22AU$38.00
AU$35.48
-6.6%
8.6%AU$40.20AU$32.00AU$29.386
Oct ’22AU$33.70
AU$31.94
-5.2%
10.3%AU$36.40AU$24.85AU$26.477
Sep ’22AU$30.02
AU$31.35
+4.4%
8.8%AU$34.00AU$24.85AU$28.107
Aug ’22AU$28.21
AU$30.09
+6.7%
12.8%AU$35.00AU$23.00AU$27.668
Jul ’22AU$24.47
AU$28.46
+16.3%
10.4%AU$33.00AU$23.00AU$24.588
Jun ’22AU$21.99
AU$27.83
+26.5%
11.2%AU$30.80AU$20.75AU$24.298
May ’22AU$22.72
AU$27.17
+19.6%
18.7%AU$32.06AU$14.98AU$26.8710
Apr ’22AU$23.80
AU$27.25
+14.5%
18.8%AU$32.06AU$14.98AU$30.0510
Mar ’22AU$26.48
AU$27.69
+4.6%
18.4%AU$32.06AU$14.98AU$28.3110
Feb ’22AU$23.50
AU$22.06
-6.1%
14.0%AU$26.00AU$14.98AU$29.639
Jan ’22AU$19.85
AU$21.28
+7.2%
12.7%AU$25.09AU$14.98AU$34.659
Dec ’21AU$23.97
AU$21.28
-11.2%
12.7%AU$25.09AU$14.98AU$32.889

Analyst Forecast: Target price is less than 20% higher than the current share price.


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