Is Grand Canyon Education, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Grand Canyon Education, Inc. has moved from fair to attractive. The company appears to be undervalued based on its strong performance metrics. Notable ratios include a P/E ratio of 33, an EV to EBITDA of 22.86, and a ROCE of 57.41%, which highlight its robust profitability and operational efficiency compared to peers.
In comparison to its peers, Grand Canyon Education has a higher P/E ratio than Genpact Ltd. at 14.38 and ADT, Inc. at 10.02, indicating a premium valuation relative to these companies. However, it is lower than Bright Horizons Family Solutions, Inc., which is considered expensive with a P/E of 36.94. Additionally, the company's stock has outperformed the S&P 500 significantly over the past year, with a return of 58.75% compared to the S&P 500's 14.08%, reinforcing the attractiveness of its current valuation.