Is Now An Opportune Moment To Examine Laureate Education, Inc. (NASDAQ:LAUR)?

By
Simply Wall St
Published
September 03, 2021
NasdaqGS:LAUR
Source: Shutterstock

Laureate Education, Inc. (NASDAQ:LAUR), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$16.10 at one point, and dropping to the lows of US$14.42. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Laureate Education's current trading price of US$15.61 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Laureate Education’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Laureate Education

What's the opportunity in Laureate Education?

According to my valuation model, Laureate Education seems to be fairly priced at around 8.99% above my intrinsic value, which means if you buy Laureate Education today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $14.32, there’s only an insignificant downside when the price falls to its real value. In addition to this, Laureate Education has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Laureate Education generate?

earnings-and-revenue-growth
NasdaqGS:LAUR Earnings and Revenue Growth September 4th 2021

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted revenue growth of 6.3% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Laureate Education, at least in the short term.

What this means for you:

Are you a shareholder? LAUR’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on LAUR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Diving deeper into the forecasts for Laureate Education mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

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