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. Key ratios include a P/E ratio of 86, a Price to Book Value of 4.86, and an EV to EBITDA of 26.76, all of which significantly exceed those of its peers. For instance, Reservoir Media, Inc. has a P/E of 39.21 and an EV to EBITDA of 14.18, indicating that Lincoln is trading at a premium compared to its industry counterparts.
Despite its high valuation, Lincoln Educational Services Corp. has shown impressive stock performance, with a year-to-date return of 36.79% compared to the S&P 500's 13.30%, and a one-year return of 67.75% against the S&P 500's 14.08%. However, the elevated valuation ratios suggest that the stock may not sustain this level of performance in the long term.