5 models fit Perdoceo Education Corporation Common Stock and they disagree: 1 of 5 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver76
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionPerdoceo Education Corporation Common Stock (PRDO)
Fair value (5 models)
$42.23
ACCE price target
$37.00
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 17:05 CEST; previously $45.33 since 10 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 17:05 CEST.
Price used: $33.90 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
19.7% below
+24.6% to fair value
ACCE score
72
out of 100
Analysts
100% buy
1 covering
P/E
11.9x
forward 9.5x
1-year return
-8.0%
Dividend yield
1.89%
Perdoceo Education Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Perdoceo Education runs a portfolio of for-profit postsecondary schools, including Colorado Technical University, American InterContinental University and University of the Potomac, offering mostly online degree and certificate programs to adult learners. Its edge is a regulatory and accreditation footprint that is costly for new entrants to replicate, which supports an operating margin of 25.7% on a 79.9% gross margin, and the business has been buying back stock and returning cash. Revenue growth is only 1.8%, so the investment case rests on margin durability and capital return rather than top-line expansion. At 12.3 times trailing and 9.5 times forward earnings, with a 17.5% ROE, the stock is priced for little growth, which makes the regulatory and enrollment trajectory the key items to test in a deeper review.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Revenue growth slowing
Revenue grew only 1.8% year on year against a 4.2% five-year CAGR, and fell 3.8% quarter on quarter. Earnings growth of 21.0% is not matched by the top line.
moderate
Elevated short interest
Short interest stands at 8.2% of float, a meaningful bet against the shares given the slowing top line and a score that fell 9 points over 90 days.
moderate
Insider selling without buys
Insiders disclosed $2.20M of sales across the last 10 filings and no purchases, with insiders holding only 1.2% of the company.
AI research notes
AI-assisted·How I use AIWritten Oct 13, 2026 · figures from 2026-10-09 · prices to Oct 23, 2026
Why it could do well
The stock trades at 9.5x forward earnings against a sector median of 18.0x, a steep discount for a business still growing revenue.
Free cash flow of $217M over the last twelve months implies a 10.3% free cash flow yield at the current share price.
Consensus fair value of $45.33 sits 34.4% above the $33.73 share price, and all five valuation models in the consensus are included.
Why it could disappoint
Revenue grew only 1.8% over the past year, well below its 4.2% five-year average, so growth has clearly slowed.
The current price implies cash flow shrinking 2.6% a year for five years, which signals the market already doubts the business.
Every analyst covering the stock rates it Buy or Strong Buy, but that rests on a single analyst, so the signal is thin.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where PRDO's valuation models land
Price
$33.90
Model fair value
$42.23
Model range
$25.37 to $58.32
Fair value $42.23
Price $33.90
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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