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, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its strong performance metrics. Key ratios include a P/E ratio of 33, an EV to EBITDA of 22.86, and a ROCE of 57.41%, all of which suggest robust profitability and operational efficiency compared to its peers.
In the peer comparison, Grand Canyon Education's P/E ratio is higher than Genpact Ltd. at 14.38 and ADT, Inc. at 10.02, while it is lower than Bright Horizons Family Solutions, Inc. at 36.94, which is considered expensive. The company's stock has outperformed the S&P 500 across multiple periods, with a year-to-date return of 29.18% compared to the S&P 500's 13.30%, reinforcing the notion that it is currently undervalued.