Assessing Laureate Education (LAUR) Valuation After Strong Multi‑Year Shareholder Returns

Why Laureate Education is on investors’ radar today

Laureate Education (LAUR) has drawn fresh attention after recent trading data highlighted its share performance over the past month and past 3 months, prompting investors to reassess the higher education provider’s current valuation.

See our latest analysis for Laureate Education.

The recent 90 day share price return of 12.17%, alongside a 1 year total shareholder return of 78.19% and very large 5 year total shareholder return, suggests momentum has been building around Laureate Education despite a 1 day share price decline of 1.32% to US$34.48.

If Laureate’s recent move has you thinking about what else is working in education and healthcare, it could be a good moment to scan healthcare stocks for fresh ideas.

With LAUR trading at US$34.48, an intrinsic value estimate implying a 53.67% discount and a modest gap to the current analyst price target, the key question is simple: is there genuine upside left, or is the market already pricing in future growth?

Most Popular Narrative: 9.7% Undervalued

At $34.48, Laureate Education sits below a widely followed fair value estimate of $38.17, which relies on detailed long term forecasts for growth, margins and valuation multiples.

Analysts are assuming Laureate Education's revenue will grow by 8.4% annually over the next 3 years.

Analysts assume that profit margins will increase from 16.4% today to 17.4% in 3 years time.

Read the complete narrative.

Curious how steady revenue gains, higher margins and a trimmed future P/E all fit together into that fair value? The full narrative lays out the playbook.

Result: Fair Value of $38.17 (UNDERVALUED)

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

However, this narrative can be challenged if heavy spending on new campuses in Mexico and Peru fails to attract enough students, or if currency moves dilute reported results.

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

Build Your Own Laureate Education Narrative

If this story does not quite match how you see Laureate, you can review the numbers yourself and create a custom view in minutes: Do it your way.

A great starting point for your Laureate Education research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Laureate has caught your attention, do not stop there. Broadening your watchlist with fresh ideas today could make a real difference to tomorrow’s portfolio.

• Explore potential opportunities in smaller names by scanning these 3532 penny stocks with strong financials, which focus on lower share prices alongside balance sheets and financial track records.
• Review these 25 AI penny stocks for companies associated with artificial intelligence themes and related technologies.
• Look at these 868 undervalued stocks based on cash flows for companies trading below certain estimates based on their cash flows.

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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