Lincoln Educational Services Valuation

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

LINC ($15.19) is trading below our estimate of [[fair value]] ($55.1)

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

Valuation Score

2/6

Valuation Score 2/6

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 LINC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LINC ($15.19) is trading below our estimate of fair value ($55.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LINC. This is calculated by dividing LINC's market cap by their current earnings.
What is LINC's PE Ratio?
PE Ratio	48.5x
Earnings	US$9.85m
Market Cap	US$478.17m

LINC 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/Revenue	1.4x
Enterprise Value/EBITDA	25.9x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LINC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.7x
APEI American Public Education	32.4x	58.3%	US$324.5m
UTI Universal Technical Institute	46.7x	41.0%	US$1.1b
AFYA Afya	14.5x	21.9%	US$1.4b
PRDO Perdoceo Education	13.1x	9.1%	US$1.7b
LINC Lincoln Educational Services	48.5x	60.6%	US$478.2m

Price-To-Earnings vs Peers: LINC is expensive based on its Price-To-Earnings Ratio (48.5x) compared to the peer average (26.7x).

Price to Earnings Ratio vs Industry

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

6 Companies	Price / Earnings	Estimated Growth	Market Cap
QSG QuantaSing Group	2.7x	-21.4%	US$143.12m
STG Sunlands Technology Group	1.4x	n/a	US$91.73m
REDU RISE Education Cayman	1x	n/a	US$40.41m
RGS Regis	0.5x	n/a	US$39.58m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LINC is expensive based on its Price-To-Earnings Ratio (48.5x) compared to the US Consumer Services industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is LINC'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.

LINC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	48.5x
Fair PE Ratio	33.1x

Price-To-Earnings vs Fair Ratio: LINC is expensive based on its Price-To-Earnings Ratio (48.5x) compared to the estimated Fair Price-To-Earnings Ratio (33.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.