Is Grand Canyon Education, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Grand Canyon Education, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered 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 deemed expensive with a P/E of 36.94, highlighting Grand Canyon's relatively favorable valuation.
Additionally, Grand Canyon Education has demonstrated strong performance with a year-to-date return of 29.18%, significantly outpacing the S&P 500's return of 13.30% during the same period. This performance, along with the company's attractive valuation metrics, reinforces the conclusion that it is undervalued in the current market context.