Is Perdoceo Education Corp. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Perdoceo Education Corp. moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, especially when considering its P/E ratio of 18, which is significantly lower than the peer average of 23.77 for Stride, Inc. and 39.20 for Adtalem Global Education, Inc. Additionally, Perdoceo's EV to EBITDA ratio stands at 10.43, which is also more favorable compared to the industry benchmarks.
In terms of performance, Perdoceo Education Corp. has demonstrated impressive returns, with a 1-year return of 62.25% compared to the S&P 500's 17.14%, and a 3-year return of 232.24% versus 70.41% for the index. This strong performance reinforces the notion that the stock is undervalued relative to its growth potential and market performance.