Is Grand Canyon Education, Inc. overvalued or undervalued?

As of 10 June 2025, the valuation grade for Grand Canyon Education, Inc. moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued. Key ratios include a P/E ratio of 33, an EV to EBITDA of 22.86, and a ROCE of 57.41%, which suggests strong operational efficiency relative to its capital employed.
In comparison with peers, Grand Canyon Education's P/E ratio of 33 is higher than MAXIMUS, Inc. at 12.96, yet it remains competitive against R1 RCM, Inc. and Remitly Global, Inc., which are both rated risky. The PEG ratio of 2.46 also reflects growth expectations that may not be fully priced in. Notably, the company's stock has outperformed the S&P 500 over the past year, returning 41.38% compared to the index's 10.26%, reinforcing the notion that the stock may be undervalued relative to its growth potential.