Is Adtalem Global Education, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Adtalem Global Education, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 37, which is relatively high compared to peers like Stride, Inc. with a P/E of 23.77 and Life Time Group Holdings, Inc. at 27.16. Additionally, the EV to EBITDA ratio is 21.15, which also indicates a premium compared to the industry average, while the PEG ratio of 0.65 suggests growth potential relative to its valuation.
In terms of performance, Adtalem has shown impressive returns, with a year-to-date return of 53.70% compared to the S&P 500's 12.22%, and a one-year return of 89.81% versus the S&P 500's 17.14%. This strong performance reinforces the notion that while the stock is fairly valued, it has outperformed the broader market significantly over various time frames.