Is Lincoln Educational Services Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lincoln Educational Services Corp. moved from fair to very expensive. The company is overvalued based on its current metrics, which include a P/E ratio of 86, a Price to Book Value of 4.86, and an EV to EBITDA of 26.76. In comparison, peers such as Reservoir Media, Inc. have a P/E of 39.21 and an EV to EBITDA of 14.18, indicating that Lincoln is significantly more expensive relative to its industry.
Additionally, the company has demonstrated strong stock performance, with a year-to-date return of 36.79% compared to the S&P 500's 13.30%, and an impressive 3-year return of 334.54% versus the S&P 500's 81.19%. However, despite this strong performance, the high valuation ratios suggest that the stock may not be a prudent investment at its current price.