Laureate Education (LAUR): Evaluating Valuation After Strong Q3 Revenue Beat and Expanded Buyback Plan

Laureate Education (LAUR) attracted investor attention after posting third-quarter revenue growth of nearly 9% year over year. This result beat Wall Street estimates and prompted a boost to its full-year revenue guidance.

See our latest analysis for Laureate Education.

After a strong revenue beat and a higher full-year outlook, Laureate Education’s momentum is hard to ignore. The latest guidance increase and expanded buyback plan helped sustain a positive investor narrative, even as quarterly earnings per share missed expectations. The stock’s 71.8% total shareholder return over the past year and a standout 344.7% over five years show that long-term holders have enjoyed outsized gains. Robust year-to-date and 90-day share price returns also underline building momentum around the story.

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With analyst price targets sitting well above the current share price and a substantial increase in buybacks, investors now face a key question: Is Laureate Education still undervalued, or has the market already accounted for its future growth?

Most Popular Narrative: 14.1% Undervalued

Laureate Education’s narrative fair value stands well above the recent closing price, as the story unfolds around capex-fueled expansion and digital momentum in Latin America.

Ongoing expansion into high-growth Latin American markets (Mexico, Peru) through new campus openings and targeted capacity investments leverages rising demand for private tertiary education. This is likely to drive sustained enrollment and revenue growth over the next several years. Strong momentum in digital learning, particularly the expansion of fully online degree programs for working adults in both Mexico and Peru, broadens Laureate's addressable market and supports accelerated top-line growth by attracting non-traditional students beyond the core undergraduate base.

Read the complete narrative.

Curious about the numbers behind this bullish valuation? The narrative hinges on ambitious forecasts for both top and bottom line growth, executed against a fast-changing student mix. Discover which specific drivers could tip the scales for Laureate’s future.

Result: Fair Value of $33.80 (UNDERVALUED)

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

However, concentrated exposure to Mexico and Peru, as well as growing competition from digital rivals, could impact Laureate's growth outlook and challenge margin expansion.

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

Another View: Looking Through the Market’s Lens

While narrative valuations suggest Laureate Education is undervalued, the market’s favored price-to-earnings measure tells a different story. Laureate trades at 21.1x earnings, making it more expensive than both industry (18.4x) and peer averages (19.4x). The fair ratio estimate is even higher at 26.4x, which highlights valuation risk if market sentiment shifts. Could this premium signal optimism, or does it leave room for disappointment if growth falters?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Laureate Education Narrative

For readers who want to dive deeper or see the story from a different angle, you can quickly craft your own perspective and insights. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Laureate 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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