Is Perdoceo Education Corp. overvalued or undervalued?

As of 1 October 2023, Perdoceo Education Corp. has moved from fair to attractive in its grade change. The company is currently undervalued based on its financial metrics. Key ratios include a price-to-earnings (P/E) ratio of 12.5, a price-to-book (P/B) ratio of 1.8, and a return on equity (ROE) of 15%.
When compared to peers, Grand Canyon Education has a P/E of 18.2, while Strayer Education shows a P/B of 3.1. This indicates that Perdoceo is trading at a discount relative to its competitors, reinforcing its undervaluation. Additionally, Perdoceo's stock has outperformed the Sensex recently, further supporting the positive valuation outlook.