Strategic Education, Inc. (STRA) 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

+173.6%

$198.58

vs $72.57 price

Levered DCF

$160.09

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.35

Safe zone

Rating

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	14.37×	19.42×	31×	39.76×	25.15×	25.02×	42.6×	-110.12×
P/B	1.08×	1.32×	1.31×	1.13×	0.81×	1.23×	2.36×	1.21×
P/S	1.4×	1.79×	1.91×	1.74×	1.22×	2.1×	3.46×	2.72×
EV / EBITDA	7.74×	10.78×	12.95×	13.86×	6.77×	9.21×	13.22×	14.5×
Gross margin	49.0%	46.7%	44.9%	43.9%	46.3%	48.2%	46.8%	46.4%
Operating margin	15.5%	12.8%	8.4%	6.6%	6.5%	10.6%	11.1%	-3.6%
Net margin	10.0%	9.2%	6.2%	4.4%	4.9%	8.4%	8.1%	-2.5%
Current ratio	1.27×	1.41×	1.57×	1.57×	1.88×	1.43×	3.34×	3.36×
Debt / equity	0.07×	0.08×	0.13×	0.16×	0.19×	0.16×	0.07×	0×
Interest coverage	0×	0×	0×	0×	0×	78.13×	0×	0×
Dividend yield	3.2%	2.7%	2.7%	3.2%	4.3%	2.6%	1.4%	1.6%
Payout ratio	45.4%	52.3%	84.2%	126.9%	107.2%	64.9%	57.5%	-177.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.7%	6.8%	4.2%	2.9%	3.2%	4.9%	5.5%	-1.1%
Return on invested capital	7.6%	5.9%	3.4%	2.4%	2.5%	3.9%	4.4%	-1.2%
Return on assets	6.2%	5.5%	3.3%	2.2%	2.4%	3.8%	4.5%	-0.9%
Free cash flow yield	8.7%	5.9%	3.7%	4.5%	9.5%	4.5%	4.7%	1.1%
Earnings yield	7.1%	5.2%	3.2%	2.5%	4.0%	4.0%	2.4%	-0.9%
Enterprise value	$1.7B	$2.2B	$2.2B	$1.9B	$1.4B	$2.3B	$3.1B	$1.4B
Net debt / EBITDA	-0.14×	-0.06×	0.26×	0.33×	0.29×	0.39×	-1.32×	-3.18×
Cash conversion cycle (days)	-9	-8	-4	-6	-11	-26	-14	-7