Laureate Education Valuation
| LAUR Stock | USD 14.06 0.01 0.07% |
At this time, the firm appears to be overvalued. Laureate Education secures a last-minute Real Value of $11.67 per share. The latest price of the firm is $14.06. Our model forecasts the value of Laureate Education from analyzing the firm fundamentals such as Current Valuation of 2.71 B, return on equity of 0.14, and Profit Margin of 0.07 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Laureate Education's valuation include:
Price Book 2.3819 | Enterprise Value 2.7 B | Enterprise Value Ebitda 7.286 | Price Sales 1.5236 | Forward PE 16.9205 |
Overvalued
Today
Please note that Laureate Education's price fluctuation is not too volatile at this time. Calculation of the real value of Laureate Education is based on 3 months time horizon. Increasing Laureate Education's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Laureate Education is useful when determining the fair value of the Laureate stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Laureate Education. Since Laureate Education is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Laureate Stock. However, Laureate Education's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 14.06 | Real 11.67 | Target 17.33 | Hype 14.06 | Naive 13.41 |
The real value of Laureate Stock, also known as its intrinsic value, is the underlying worth of Laureate Education Company, which is reflected in its stock price. It is based on Laureate Education's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Laureate Education's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Laureate Education's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Laureate Education helps investors to forecast how Laureate stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Laureate Education more accurately as focusing exclusively on Laureate Education's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Laureate Education's intrinsic value based on its ongoing forecasts of Laureate Education's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Laureate Education's closest peers. When choosing an evaluation method for Laureate Education, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Laureate Education Investments |
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Laureate Valuation Trend
Knowing Laureate Education's actual value is paramount for traders to make sound investment determinations. Laureate Education's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Laureate Education's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Laureate Education's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Laureate Market Cap
Laureate Education is rated fourth overall in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is now estimated at about 16.57 Billion. Laureate Education retains roughly 2.22 Billion in market capitalization claiming about 13% of stocks in Consumer Discretionary industry.Laureate Education Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Laureate Education's current stock value. Our valuation model uses many indicators to compare Laureate Education value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Laureate Education competition to find correlations between indicators driving Laureate Education's intrinsic value. More Info.Laureate Education is rated below average in price to earning category among related companies. It is rated fourth overall in price to book category among related companies fabricating about 0.34 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Laureate Education is roughly 2.96 . As of 04/19/2024, Price To Book Ratio is likely to grow to 2.39. Comparative valuation analysis is a catch-all model that can be used if you cannot value Laureate Education by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Laureate Education's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Laureate Education's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Laureate Education's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Laureate Education and how it compares across the competition.
About Laureate Education Valuation
The stock valuation mechanism determines the current worth of Laureate Education on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Laureate Education. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Laureate Education based exclusively on its fundamental and basic technical indicators. By analyzing Laureate Education's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Laureate Education's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Laureate Education. We calculate exposure to Laureate Education's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Laureate Education's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 394.5 M | 284.9 M | |
| Pretax Profit Margin | 0.17 | 0.18 | |
| Operating Profit Margin | 0.23 | 0.24 | |
| Net Profit Margin | 0.07 | 0.05 | |
| Gross Profit Margin | 0.27 | 0.25 |
8 Steps to conduct Laureate Education's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Laureate Education's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Laureate Education's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Laureate Education's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Laureate Education's revenue streams: Identify Laureate Education's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Laureate Education's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Laureate Education's growth potential: Evaluate Laureate Education's management, business model, and growth potential.
- Determine Laureate Education's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Laureate Education's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Laureate Education represents a small ownership stake in the entity. As a stockholder of Laureate, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Laureate Education Dividends Analysis For Valuation
Please note that Laureate Education has scaled down on payment of dividends at this time. At this time, Laureate Education's Retained Earnings are relatively stable compared to the past year. As of 04/19/2024, Retained Earnings Total Equity is likely to grow to about 47.4 M, while Earnings Yield is likely to drop 0.03.
There are various types of dividends Laureate Education can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Laureate shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Laureate Education directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Laureate pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Laureate Education by the value of the dividends paid out.
Laureate Education Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Laureate Education does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 157.9 M | |
| Quarterly Earnings Growth Y O Y | 0.084 | |
| Forward Price Earnings | 16.9205 |
Laureate Education Current Valuation Indicators
Valuation refers to the process of determining the present value of Laureate Education and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Laureate we look at many different elements of the entity such as Laureate's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Laureate Education's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Laureate Education's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Laureate Education, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Laureate Education's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Laureate Education's worth.When determining whether Laureate Education is a strong investment it is important to analyze Laureate Education's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Laureate Education's future performance. For an informed investment choice regarding Laureate Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Laureate Education. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. To learn how to invest in Laureate Stock, please use our How to Invest in Laureate Education guide.You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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When running Laureate Education's price analysis, check to measure Laureate Education's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Laureate Education is operating at the current time. Most of Laureate Education's value examination focuses on studying past and present price action to predict the probability of Laureate Education's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Laureate Education's price. Additionally, you may evaluate how the addition of Laureate Education to your portfolios can decrease your overall portfolio volatility.
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Is Laureate Education's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Laureate Education. If investors know Laureate will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Laureate Education listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.084 | Earnings Share 0.74 | Revenue Per Share 9.439 | Quarterly Revenue Growth 0.182 | Return On Assets 0.1043 |
The market value of Laureate Education is measured differently than its book value, which is the value of Laureate that is recorded on the company's balance sheet. Investors also form their own opinion of Laureate Education's value that differs from its market value or its book value, called intrinsic value, which is Laureate Education's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Laureate Education's market value can be influenced by many factors that don't directly affect Laureate Education's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Laureate Education's value and its price as these two are different measures arrived at by different means. Investors typically determine if Laureate Education is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Laureate Education's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.