Perdoceo Education Corporation
Perdoceo Education Corporation (NASDAQ: PRDO) provides post-secondary education through online, campus-based, and blended learning programs to a broad student population. PRDO offers master's, and doctoral degree programs, and associate and bachelor's degree programs through its two accredited institutions, The Colorado Technical University (CTU) and the American InterContinental University System (AIU).
Should Investors make exit?
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
PRDO's share price has declined 16.76% in the past nine months and is currently leaning towards the lower band of the 52-week range of USD 9.65 to USD 13.95. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 9.18.
Considering the company's declining profitability, margins, dependence on Title IV programs, current valuation and associated risks. We recommend a "Sell" rating on the stock at the closing price of USD 10.08, traded flat as of February 23, 2022.
Three-Year Technical Price Chart (as of February 23, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.