Is Grand Canyon Education, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Grand Canyon Education, Inc. has moved from fair to attractive. The company appears to be undervalued, supported by a P/E ratio of 33, an EV to EBITDA of 22.86, and a PEG ratio of 2.46. In comparison to peers, Genpact Ltd. has a P/E of 14.38, while Bright Horizons Family Solutions, Inc. is considered very expensive with a P/E of 36.94.
In terms of recent performance, Grand Canyon Education has outperformed the S&P 500 with a year-to-date return of 27.70% compared to the index's 12.22%. Over the past year, the stock has returned 47.76%, significantly exceeding the S&P 500's 17.14% return, reinforcing the attractiveness of its current valuation.