Perdoceo Education (PRDO): Evaluating Valuation as Strong Operations and Cash Flow Attract Investor Interest

Perdoceo Education (PRDO) has been drawing attention after recent commentary focused on its efficient business operations, strong operating margins, and healthy free cash flow. This has sparked fresh curiosity among investors about future potential.

See our latest analysis for Perdoceo Education.

Perdoceo Education’s share price has gained notable momentum lately, rising over 26% in the last 90 days and bringing its year-to-date share price return to nearly 40%. Looking a bit further out, strong business execution and renewed interest have fueled a stellar 1-year total shareholder return of 78%, and a three-year total return of 236%. This performance has easily outpaced the broader market and signals durable strength rather than just a short-term bump.

If Perdoceo’s performance has you rethinking what’s possible, it might be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With Perdoceo’s share price on a tear, some wonder if its strong fundamentals and growth prospects are actually being undervalued by the market, or if buyers today are paying up for all the good news to come.

Most Popular Narrative: 13.3% Undervalued

At a last close of $36.43, the most closely followed narrative tags Perdoceo Education’s fair value at $42, signaling a significant disconnect between market price and projected worth. The story behind this higher valuation comes down to both enrollment momentum and management’s strategic moves.

Accelerated enrollment growth, including 17% total enrollment growth year-over-year and sustained momentum across both CTU and AIUS, as well as post-acquisition contribution from St. Augustine, signals strong alignment with rising demand from non-traditional, career-focused, and lifelong learners. This trend is likely to support ongoing revenue expansion into 2026.

Read the complete narrative.

Curious what justifies this ambitious price target? The narrative’s numbers hinge on standout growth drivers and a future multiple rarely seen outside premium sectors. The deeper rationale reveals intriguing financial assumptions and bold expectations for bottom line expansion. Are you ready to see the full formula that’s fueling bullish bets?

Result: Fair Value of $42 (UNDERVALUED)

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

However, investor optimism could be tested if enrollment growth stalls or if a sudden regulatory headwind disrupts the business model, which could challenge current bullish forecasts.

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

Build Your Own Perdoceo Education Narrative

If you see things differently or would rather dig into the numbers yourself, you can craft your own unique view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Perdoceo Education.

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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.

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