KinderCare Learning Companies Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: KLC ($23.64) is trading above our estimate of fair value ($23.36)

Significantly Below Fair Value: KLC is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KLC. This is calculated by dividing KLC's market cap by their current earnings.
What is KLC's PE Ratio?
PE Ratio	46.9x
Earnings	US$57.65m
Market Cap	US$2.70b

KLC 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	2.2x
Enterprise Value/EBITDA	23.6x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KLC 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	16.5x
LAUR Laureate Education	11.3x	2.3%	US$2.8b
ATGE Adtalem Global Education	19.1x	20.4%	US$3.3b
GHC Graham Holdings	17.5x	n/a	US$4.0b
STRA Strategic Education	18.2x	7.3%	US$2.3b
KLC KinderCare Learning Companies	46.9x	42.5%	US$2.7b

Price-To-Earnings vs Peers: KLC is expensive based on its Price-To-Earnings Ratio (46.9x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

How does KLC'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$144.65m
STG Sunlands Technology Group	1.4x	n/a	US$90.87m
RGS Regis	0.5x	n/a	US$42.43m
REDU RISE Education Cayman	1x	n/a	US$40.41m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KLC is expensive based on its Price-To-Earnings Ratio (46.9x) compared to the US Consumer Services industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is KLC'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.

KLC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	46.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KLC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.