Perdoceo Education Corporation (PRDO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+45.3%

$43.10

vs $29.66 price

Levered DCF

$47.44

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

6.34

Safe zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.87×	11.76×	7.91×	9.86×	7.49×	7.06×	18.39×	14.46×
P/B	1.95×	1.81×	1.39×	1.3×	1.27×	1.58×	2.99×	2.24×
P/S	2.25×	2.55×	1.64×	1.36×	1.19×	1.28×	2.05×	1.37×
EV / EBITDA	7.07×	8.12×	5.14×	5.63×	3.29×	5.09×	12.16×	9.03×
Gross margin	71.7%	82.3%	81.6%	83.2%	84.3%	83.7%	83.8%	81.1%
Operating margin	23.2%	25.6%	21.2%	18.6%	21.5%	20.8%	13.8%	12.3%
Net margin	18.9%	21.7%	20.8%	13.8%	15.8%	18.1%	11.1%	9.5%
Current ratio	5.06×	4.84×	5.9×	3.52×	3.95×	4.5×	3.47×	2.78×
Debt / equity	0.11×	0.14×	0.03×	0.05×	0.07×	0.1×	0.15×	0×
Interest coverage	30.32×	284.26×	372.39×	324.09×	161.97×	855.89×	517.74×	104.7×
Dividend yield	1.9%	1.8%	1.2%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	23.0%	21.5%	9.8%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.4%	15.4%	17.5%	13.2%	16.9%	22.4%	16.2%	15.5%
Return on invested capital	12.6%	11.4%	12.8%	11.6%	15.3%	19.3%	12.9%	13.9%
Return on assets	12.6%	11.9%	14.7%	10.0%	12.9%	17.2%	11.7%	11.4%
Free cash flow yield	11.4%	9.0%	9.0%	14.4%	21.9%	19.4%	5.3%	6.3%
Earnings yield	8.4%	8.5%	12.7%	10.2%	13.3%	14.2%	5.4%	6.9%
Enterprise value	$1.9B	$1.8B	$1.1B	$868.7M	$548.4M	$824.2M	$1.2B	$762.4M
Net debt / EBITDA	-0.1×	0.1×	-0.43×	-0.49×	-1.65×	-0.32×	-0.43×	-0.38×
Cash conversion cycle (days)	-2	-13	1	-12	-10	-16	-6	-8