Laureate Education (NASDAQ:LAUR): Is the Stock Still Undervalued After Upbeat Q3 Results and Upgraded Guidance?

Laureate Education (LAUR) announced its third quarter results, highlighting year-over-year revenue growth and margin improvement. Management also raised guidance for 2025 and increased the company’s share buyback plan, reflecting confidence in ongoing momentum.

See our latest analysis for Laureate Education.

Laureate Education’s upbeat third quarter, boosted by double-digit enrollment gains and expanded buybacks, seems to have fueled further optimism among investors. The company’s 67% year-to-date share price return stands out, while strong execution has translated into a five-year total shareholder return of 359%, highlighting enduring momentum in the business.

If you’re interested in where else strong growth and investor conviction are colliding, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

The question now is whether Laureate Education’s rapid share price gains and robust guidance upgrades leave the stock undervalued, or if the market has already priced in all the expected growth ahead. Is there still a buying opportunity?

Most Popular Narrative: 11.1% Undervalued

The most widely followed narrative factors in a projected fair value of $34.20, which is notably higher than Laureate Education’s last close at $30.39. This calculated gap highlights the bullish growth assumptions that underpin the narrative’s outlook.

Ongoing expansion into high-growth Latin American markets (Mexico, Peru) through new campus openings and targeted capacity investments leverages rising demand for private tertiary education. This is likely to drive sustained enrollment and revenue growth over the next several years. Strong momentum in digital learning, particularly the expansion of fully online degree programs for working adults in both Mexico and Peru, broadens Laureate's addressable market and supports accelerated top-line growth by attracting non-traditional students beyond the core undergraduate base.

Read the complete narrative.

Want to know what’s supercharging this valuation? The narrative points to growth across multiple markets and the pursuit of premium margins. Curious about the profit targets and topline approach driving this projection? See the quantitative assumptions that make this fair value possible.

Result: Fair Value of $34.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the company's heavy reliance on Mexico and Peru, along with the need for sustained enrollment growth, means that unexpected regional or demand shifts could challenge this optimistic outlook.

Find out about the key risks to this Laureate Education narrative.

Build Your Own Laureate Education Narrative

Not convinced by the current outlook or eager to follow your own instincts? You can examine the data yourself and easily craft your own perspective in just a few minutes. Do it your way

A great starting point for your Laureate Education research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Investment Ideas?

There’s real opportunity waiting in other corners of the market. Make your next move with confidence by seeking out stocks that match your goals and growth ambitions.

• Tap into the future of healthcare breakthroughs by checking out these 32 healthcare AI stocks and see which companies are pushing boundaries with AI-powered medical innovations.
• Uncover hidden gems with real upside potential through these 876 undervalued stocks based on cash flows and spot undervalued stocks before the crowd catches on.
• Supercharge your portfolio with steady income and see which companies are offering strong yields with these 16 dividend stocks with yields > 3%.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com