IDP Education Limited

ASX:IEL Stock Report

Market Cap: AU$3.2b

IDP Education Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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$11.49) is trading below our estimate of fair value (A$26.65)

Significantly Below Fair Value: IEL is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As IEL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IEL. This is calculated by dividing IEL's market cap by their current earnings.
What is IEL's PE Ratio?
PE Ratio24.1x
EarningsAU$132.75m
Market CapAU$3.22b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.1x
GEM G8 Education
17.4x14.8%AU$1.1b
EVO Embark Early Education
16.9x30.9%AU$139.4m
KME Kip McGrath Education Centres
20.5xn/aAU$27.0m
DMP Domino's Pizza Enterprises
29.5x19.5%AU$2.7b
IEL IDP Education
24.1x14.1%AU$3.2b

Price-To-Earnings vs Peers: IEL is expensive based on its Price-To-Earnings Ratio (24.1x) compared to the peer average (21x).

Price to Earnings Ratio vs Industry

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

20 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IEL 24.1xIndustry Avg. 18.0xNo. of Companies33PE01224364860+
20 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IEL is expensive based on its Price-To-Earnings Ratio (24.1x) compared to the Global Consumer Services industry average (18x).

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 Ratio24.1x
Fair PE Ratio26.9x

Price-To-Earnings vs Fair Ratio: IEL is good value based on its Price-To-Earnings Ratio (24.1x) compared to the estimated Fair Price-To-Earnings Ratio (26.9x).

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$11.49
AU$18.53
+61.3%
15.0%AU$23.00AU$13.00n/a13
Dec ’25AU$12.78
AU$18.53
+45.0%
15.0%AU$23.00AU$13.00n/a13
Nov ’25AU$13.99
AU$18.53
+32.5%
15.0%AU$23.00AU$13.00n/a13
Oct ’25AU$15.95
AU$18.60
+16.6%
15.1%AU$23.00AU$13.00n/a13
Sep ’25AU$16.18
AU$18.37
+13.5%
14.1%AU$23.00AU$13.00n/a14
Aug ’25AU$15.09
AU$18.39
+21.9%
17.5%AU$23.00AU$13.00n/a14
Jul ’25AU$14.88
AU$18.44
+23.9%
17.0%AU$23.00AU$13.00n/a14
Jun ’25AU$15.95
AU$20.76
+30.1%
17.2%AU$25.50AU$15.00n/a14
May ’25AU$15.89
AU$22.85
+43.8%
18.3%AU$29.45AU$16.00n/a14
Apr ’25AU$17.92
AU$23.70
+32.3%
16.5%AU$29.45AU$16.00n/a15
Mar ’25AU$19.22
AU$24.02
+25.0%
15.8%AU$29.45AU$17.00n/a15
Feb ’25AU$19.29
AU$24.90
+29.1%
13.4%AU$27.85AU$16.50n/a14
Jan ’25AU$20.03
AU$26.76
+33.6%
13.6%AU$31.20AU$19.00n/a14
Dec ’24AU$22.86
AU$27.07
+18.4%
14.3%AU$31.20AU$18.00AU$12.7814
Nov ’24AU$22.06
AU$26.77
+21.3%
14.5%AU$31.20AU$18.00AU$13.9915
Oct ’24AU$21.38
AU$27.43
+28.3%
11.9%AU$31.20AU$20.00AU$15.9514
Sep ’24AU$25.00
AU$27.97
+11.9%
13.4%AU$35.50AU$20.00AU$16.1815
Aug ’24AU$24.76
AU$27.39
+10.6%
16.8%AU$35.50AU$18.50AU$15.0915
Jul ’24AU$22.10
AU$27.50
+24.5%
16.9%AU$35.50AU$18.50AU$14.8815
Jun ’24AU$20.46
AU$27.57
+34.8%
16.6%AU$35.50AU$18.50AU$15.9515
May ’24AU$27.60
AU$32.66
+18.3%
13.6%AU$37.00AU$22.50AU$15.8914
Apr ’24AU$27.31
AU$32.89
+20.4%
13.1%AU$37.00AU$22.50AU$17.9214
Mar ’24AU$28.13
AU$32.69
+16.2%
13.5%AU$37.00AU$22.50AU$19.2213
Feb ’24AU$31.20
AU$32.73
+4.9%
13.9%AU$38.00AU$22.00AU$19.2913
Jan ’24AU$27.18
AU$32.70
+20.3%
14.0%AU$38.00AU$22.00AU$20.0313
Dec ’23AU$29.35
AU$32.52
+10.8%
14.2%AU$38.00AU$21.20AU$22.8613

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 17:02
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

IDP Education Limited is covered by 20 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Russell WrightBarclay Pearce Capital Pty Limited
Josh KannourakisBarrenjoey Markets Pty Limited
Piers FlanaganBarrenjoey Markets Pty Limited