Laureate Education, Inc. (LAUR)
Valuation Overview•Is Laureate Education, Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 71/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is broadly bullish, projecting solid upside with steady expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
LAUR demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 20.3% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (11.1% 3Y CAGR) paired with highly explosive earnings growth (72.2% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 24.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $272.6M | +8.6% | +11.1% | +10.7% | -8.8% | |
| EBITDA | $4.1M | — | +14.8% | — | — | |
| Net Income | -$21.6M | -5.0% | +59.4% | — | — | |
| EPS (Diluted) | $-0.15 | -1.6% | +72.2% | — | — | |
| Free Cash Flow | $53.6M | +63.6% | +28.0% | +7.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 26.9% | 27.2% | 26.7% | 23.0% |
| Operating Margin | 24.0% | 24.0% | 18.7% | 7.8% |
| Net Margin | 16.1% | 14.2% | 13.2% | 13.0% |
| FCF Margin | 15.2% | 12.9% | 6.0% | 7.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.22 | $-0.17 | +21.3% | ||
| Q1'26 | $0.76 | $0.76 | +0.0% | ||
| Q4'25 | $0.79 | $0.25 | -68.4% | ||
| Q3'25 | $0.23 | $0.79 | +243.5% | ||
| Q2'25 | $-0.33 | $-0.11 | +66.7% | ||
| Q1'25 | $0.42 | $0.62 | +47.6% | ||
| Q4'24 | $0.16 | $0.56 | +250.0% | ||
| Q3'24 | $0.63 | $0.83 | +31.7% |
Total return is +62.0% (1Y), outperforming the benchmark by +37.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +9.4% | +0.1% | — |
| 1Y | +62.0% | +37.0% | — |
| 3YCAGR | +46.8% | +26.8% | +6.0% |
| 5YCAGR | +25.4% | +12.2% | +65.8% |
| 10YCAGR | +13.3% | -0.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Laureate Education, Inc. (LAUR) valuation, health, and returns.
Laureate Education, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +52.1% upside to DCF intrinsic value of $55.41)
Laureate Education, Inc. has multiple valuation anchors: DCF Intrinsic Value: $55.41 | Peer Relative Fair Value: $34.99 | Wall Street Analyst Target: $39.00 (implying +7.1% upside). A convergence of these signals offers higher conviction.
Laureate Education, Inc. displays good financial health with a composite quality score of 71/100, supported by a Altman Z-Score of 4.4 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 20.3%.
Laureate Education, Inc. returns capital via buybacks instead of dividends, carrying a 4.1% buyback yield and reducing outstanding shares by -3.4% in the last 12 months.
Laureate Education, Inc.'s current growth trajectory is Decelerating. The company achieved +8.6% 1Y revenue growth and -1.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +11.1%.
Wall Street consensus is Buy based on 11 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a +7.1% change from current levels.
Investment risks for Laureate Education, Inc. include: -16.3% 1-year max drawdown. Volatility risk is characterized by a beta of 0.47x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.