What Does Adtalem Global Education Inc.'s (NYSE:ATGE) Share Price Indicate?

While Adtalem Global Education Inc. (NYSE:ATGE) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the NYSE over the last few months. The recent share price gains has brought the company back closer to its yearly peak. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Adtalem Global Education’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Adtalem Global Education

What's The Opportunity In Adtalem Global Education?

According to our valuation model, Adtalem Global Education seems to be fairly priced at around 11.07% above our intrinsic value, which means if you buy Adtalem Global Education today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $52.95, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Adtalem Global Education’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Adtalem Global Education?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. In the upcoming year, Adtalem Global Education's earnings are expected to increase by 24%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? ATGE’s optimistic 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 financial strength of the company. 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 an eye on ATGE, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which 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.

So while earnings quality is important, it's equally important to consider the risks facing Adtalem Global Education at this point in time. In terms of investment risks, we've identified 1 warning sign with Adtalem Global Education, and understanding it should be part of your investment process.

If you are no longer interested in Adtalem Global Education, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.