Latest Ratios: P/E Ratio 13.0x · EV/EBITDA 8.2x · ROE 16.6%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.0B | $1.9B | $1.8B | $1.2B | $960M | $834M | $900M | $1.3B | $816M | $833M | $690M |
| Enterprise Value | $1.9B | $1.9B | $1.8B | $1.1B | $884M | $559M | $848M | $1.3B | $784M | $815M | $640M |
| P/E Ratio → | 12.99 | 12.12 | 12.09 | 8.06 | 10.00 | 7.59 | 7.26 | 18.96 | 14.83 | — | — |
| P/S Ratio | 2.33 | 2.29 | 2.61 | 1.68 | 1.38 | 1.20 | 1.31 | 2.11 | 1.40 | 1.40 | 0.98 |
| P/B Ratio | 2.14 | 2.00 | 1.85 | 1.42 | 1.32 | 1.28 | 1.62 | 3.07 | 2.30 | 2.81 | 2.15 |
| P/FCF | 9.10 | 8.96 | 11.34 | 11.28 | 7.08 | 4.61 | 5.29 | 19.52 | 16.24 | — | 386.92 |
| P/OCF | 8.75 | 8.61 | 11.01 | 10.63 | 6.48 | 4.36 | 5.00 | 18.14 | 14.32 | — | 116.69 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.26 | 2.65 | 1.55 | 1.27 | 0.81 | 1.23 | 2.06 | 1.35 | 1.37 | 0.91 |
| EV / EBITDA | 8.18 | 8.05 | 9.54 | 6.57 | 5.92 | 3.37 | 5.37 | 13.52 | 9.72 | 16.93 | — |
| EV / EBIT | 9.92 | 8.57 | 8.92 | 5.71 | 6.56 | 3.72 | 5.77 | 13.87 | 11.00 | 23.87 | — |
| EV / FCF | — | 8.83 | 11.48 | 10.42 | 6.52 | 3.09 | 4.98 | 19.04 | 15.60 | — | 359.16 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 71.7% | 71.7% | 82.3% | 81.6% | 83.2% | 84.3% | 83.7% | 83.8% | 81.1% | 76.0% | 66.6% |
| Operating Margin | 23.2% | 23.2% | 25.6% | 21.2% | 18.6% | 21.5% | 20.8% | 13.8% | 12.3% | 5.7% | -4.6% |
| Net Profit Margin | 18.9% | 18.9% | 21.7% | 20.8% | 13.8% | 15.8% | 18.1% | 11.1% | 9.5% | -5.3% | -2.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.6% | 16.6% | 16.4% | 18.8% | 13.9% | 18.2% | 25.2% | 17.8% | 16.9% | -10.3% | -5.7% |
| ROA | 12.7% | 12.7% | 13.2% | 15.0% | 10.6% | 14.0% | 18.8% | 12.9% | 11.9% | -6.3% | -3.2% |
| ROIC | 15.3% | 15.3% | 15.1% | 16.1% | 19.0% | 25.4% | 23.8% | 18.0% | 17.8% | 9.3% | -8.4% |
| ROCE | 17.5% | 17.5% | 17.4% | 17.8% | 17.3% | 22.5% | 25.7% | 19.6% | 19.8% | 9.4% | -8.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.11 | 0.11 | 0.14 | 0.03 | 0.05 | 0.07 | 0.10 | 0.18 | — | — | — |
| Debt / EBITDA | 0.44 | 0.44 | 0.70 | 0.16 | 0.23 | 0.27 | 0.34 | 0.79 | — | — | — |
| Net Debt / Equity | — | -0.03 | 0.02 | -0.11 | -0.10 | -0.42 | -0.09 | -0.08 | -0.09 | -0.06 | -0.15 |
| Net Debt / EBITDA | -0.11 | -0.11 | 0.12 | -0.54 | -0.51 | -1.66 | -0.33 | -0.34 | -0.40 | -0.38 | — |
| Debt / FCF | — | -0.13 | 0.14 | -0.86 | -0.56 | -1.52 | -0.31 | -0.48 | -0.64 | — | -27.77 |
| Interest Coverage | 34.54 | 34.54 | 329.61 | 476.55 | 336.67 | 163.03 | 880.22 | 558.02 | 104.70 | 75.69 | -52.71 |
Net cash position: cash ($132M) exceeds total debt ($105M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 5.06 | 5.06 | 4.84 | 5.90 | 3.52 | 3.95 | 4.50 | 3.47 | 2.78 | 1.87 | 1.47 |
| Quick Ratio | 5.03 | 5.03 | 4.82 | 5.85 | 3.51 | 3.95 | 4.49 | 3.47 | 2.77 | 1.86 | 1.46 |
| Cash Ratio | 4.67 | 4.67 | 4.30 | 5.43 | 3.11 | 3.52 | 3.91 | 2.83 | 2.36 | 1.55 | 1.17 |
| Asset Turnover | — | 0.67 | 0.55 | 0.70 | 0.73 | 0.82 | 0.95 | 1.05 | 1.20 | 1.33 | 1.26 |
| Inventory Turnover | 59.07 | 59.07 | 35.67 | 26.04 | 61.30 | 120.29 | 187.53 | 176.99 | 144.03 | 128.91 | 125.86 |
| Days Sales Outstanding | — | 13.91 | 15.07 | 17.45 | 24.16 | 23.56 | 25.25 | 32.80 | 19.66 | 12.26 | 12.31 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.9% | 1.8% | 1.2% | — | — | — | — | — | — | — |
| Payout Ratio | 23.0% | 23.0% | 21.5% | 9.8% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.7% | 8.3% | 8.3% | 12.4% | 10.0% | 13.2% | 13.8% | 5.3% | 6.7% | — | — |
| FCF Yield | 11.0% | 11.2% | 8.8% | 8.9% | 14.1% | 21.7% | 18.9% | 5.1% | 6.2% | — | 0.3% |
| Buyback Yield | 6.1% | 6.2% | 0.4% | 0.7% | 2.4% | 3.0% | 2.0% | 0.3% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.9% | 8.1% | 2.2% | 1.9% | 2.4% | 3.0% | 2.0% | 0.3% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $66M | $67M | $68M | $69M | $71M | $71M | $72M | $71M | $69M | $68M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying PRDO stock.
Perdoceo Education Corporation's current P/E ratio is 13.0x. The historical average is 27.4x. This places it at the 36th percentile of its historical range.
Perdoceo Education Corporation's current EV/EBITDA is 8.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.8x.
Perdoceo Education Corporation's return on equity (ROE) is 16.6%. The historical average is 7.5%.
Based on historical data, Perdoceo Education Corporation is trading at a P/E of 13.0x. This is at the 36th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Perdoceo Education Corporation's current dividend yield is 1.77% with a payout ratio of 23.0%.
Perdoceo Education Corporation has 71.7% gross margin and 23.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Perdoceo Education Corporation's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory Overhang Persistence
Metrics are mathematically derived from official filings.
Discount Reflecting Sector Stigma
Perdoceo trades at a significant discount to peers on most valuation metrics, with a forward P/E of 11.12 and EV/EBITDA of 8.35, suggesting the market is pricing in perpetual regulatory risk despite strong operational performance and a pristine balance sheet.
The company's forward P/E of 11.12 compares favorably to Grand Canyon Education's 19.13 and Strategic Education's 15.20, indicating a substantial valuation gap. The PEG ratio of 2.00, derived from its 24.2% revenue growth, is in line with peers but does not fully capture the quality of its 34.3% FCF margin. This discount appears structural, likely stemming from the historical 'for-profit' label, rather than reflecting the current fundamental trajectory of asset-light growth and fortress liquidity.
Margin Power from Scalable Platform
Underlying operating margins have consistently been strong in the 20-28% range, but extreme quarterly volatility in gross margin, from 54.0% to 100.0%, obscures the true earning power of the business model.
The reported 100% gross margin in Q2 2026 is an accounting anomaly; excluding such distortions, the company has delivered robust and expanding operating margins, reaching 28.5% in Q1 2026. This profitability is driven by the low marginal cost of adding students to its digital 'intellipath' platform, as evidenced by the 23.17% operating margin noted in the intelligence blocks. However, the significant swings in gross margin suggest that COGS, likely tied to variable student aid and refund provisions, can create substantial short-term noise that investors must look through to assess underlying performance.
ROIC Surge Highlights Leverage
ROIC has spiked dramatically to 20.2% in Q2 2026 from a stable range of 3.3-4.6% over the prior eight quarters, a move driven by the massive expansion in operating profit and a lean capital base.
The historic jump in ROIC to 20.2% is primarily a function of the company's ability to translate revenue growth into operating income, as the operating margin expanded while invested capital grew more slowly. This dramatic improvement warrants scrutiny, as the prior, more sustainable 4% range may better represent the normalized return on the company's core educational infrastructure. The high ROIC level is now above that of peer Grand Canyon Education (32.4% ROIC) but comes from a much lower equity base, highlighting significant operational leverage.
Cash Fortress Provides Strategic Optionality
The current ratio of 4.69 and quick ratio of 4.68, supported by $897.7 million in cash, represent an exceptionally strong liquidity position that provides complete insulation from near-term funding risks.
With cash and equivalents now exceeding 60% of total assets, Perdoceo's liquidity profile is more akin to a financial institution than an education services firm. The near-identical current and quick ratios (4.69 vs 4.68) confirm that the company's liquidity is almost entirely cash-based, with negligible reliance on inventory. This 'fortress' position, as noted in prior analysis, eliminates any concern about debt service, which is further supported by the D/E ratio of 0.05, and provides a substantial buffer against regulatory shocks or enrollment dips.
Misplaced Focus on Gross Margin
Gross margin is the most commonly misapplied ratio to Perdoceo's model, as its extreme volatility from refund and student aid accounting can mislead investors about the stability of the core value proposition.
The wild swings in gross margin from 54% to 100% are driven by non-core items like bad debt expense and student refunds, not the economics of course delivery. Focusing on this metric obscures the more stable and informative operating margin, which better reflects the true efficiency of the intellipath platform and administrative leverage. Analysts should instead focus on operating margin and free cash flow conversion as the primary indicators of profitability, as these better capture the company's scalable, asset-light model and its ability to generate cash from its recurring tuition revenue base.