Is Strategic Education, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Strategic Education, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 18, while the EV to EBITDA ratio is 9.56, and the Price to Book Value is 1.31. In comparison to peers, Strategic Education's P/E ratio is lower than that of Planet Fitness, Inc. at 47.24 and higher than Stride, Inc. at 23.77, indicating a mixed valuation landscape among competitors.
Recent stock performance shows that Strategic Education, Inc. has underperformed against the S&P 500, with a year-to-date return of -13.85% compared to the S&P 500's 13.30%. This trend continues over the longer term, with a 5-year return of -16.80% against the S&P 500's impressive 91.29%. These figures suggest that while the company is currently fairly valued, its stock performance raises concerns about future growth potential.