Assessing Perdoceo Education (PRDO)’s Valuation After a Recent Share Price Pullback
Perdoceo Education (PRDO) has quietly pulled back almost 9% over the past month even as its longer term track record and steady revenue and earnings growth paint a very different picture for patient investors.
See our latest analysis for Perdoceo Education.
The recent slide looks more like a breather than a breakdown, with a 30 day share price return of negative 8.9% coming after a solid year to date share price gain and a standout three year total shareholder return above 120%. This suggests longer term momentum is still intact even if short term sentiment has cooled.
If Perdoceo’s steady execution has you rethinking your watchlist, this could be a good moment to explore fast growing stocks with high insider ownership that might offer similar conviction backed by insider confidence.
With shares still trading well below analyst targets despite solid revenue and earnings growth, the key question now is whether Perdoceo remains undervalued or if the market is already pricing in its next leg of expansion.
Most Popular Narrative Narrative: 31.6% Undervalued
With Perdoceo Education last closing at $28.71 versus a narrative fair value of $42, the valuation hinges on a specific path for growth and margins.
Continued expansion of high-demand, industry-aligned programs (notably in nursing, speech language therapy, and healthcare doctorate programs) and introduction of flexible learning modalities (online, in-person, hybrid) positions the company to capture premium tuition and adapt to evolving workforce upskilling needs, supporting both revenue growth and higher net margins.
Curious how modest growth, slight margin compression, and a rising future earnings multiple still support a higher value than today’s price? See how the pieces fit.
Result: Fair Value of $42 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story could change if regulatory scrutiny tightens or enrollment momentum fades, especially if acquisition-driven growth proves harder to repeat.
Find out about the key risks to this Perdoceo Education narrative.
Build Your Own Perdoceo Education Narrative
If you see the numbers differently or want to stress test your own assumptions, jump into the tools and build a custom narrative in minutes, Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Perdoceo 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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