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Perdoceo Education Corporation (PRDO)

Company Dividend Discount ModelIndustry: Education & Training ServicesSector: Consumer Defensive

Valuation Snapshot

Stable Growth$16.50 - $23.75$20.04
Multi-Stage$26.51 - $29.13$27.79
Blended Fair Value$23.92
Current Price$37.66
Upside-36.50%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.470.220.000.000.000.000.000.000.000.00
YoY Growth--119.87%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.88%1.22%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)156.03
(-) Cash Dividends Paid (M)35.93
(=) Cash Retained (M)120.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)31.2119.5011.70
Cash Retained (M)120.10120.10120.10
(-) Cash Required (M)-31.21-19.50-11.70
(=) Excess Retained (M)88.90100.60108.40
(/) Shares Outstanding (M)66.8066.8066.80
(=) Excess Retained per Share1.331.511.62
LTM Dividend per Share0.540.540.54
(+) Excess Retained per Share1.331.511.62
(=) Adjusted Dividend1.872.042.16
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$16.50$20.04$23.75
Upside / Downside-56.19%-46.80%-36.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)156.03154.47152.93151.40149.88148.38152.83
Payout Ratio23.03%36.42%49.82%63.21%76.61%90.00%92.50%
Projected Dividends (M)35.9356.2676.1895.70114.82133.54141.37

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)51.0551.5752.09
Year 2 PV (M)62.7264.0065.30
Year 3 PV (M)71.4973.7075.95
Year 4 PV (M)77.8281.0584.37
Year 5 PV (M)82.1386.4190.86
PV of Terminal Value (M)1,425.761,500.001,577.31
Equity Value (M)1,770.961,856.721,945.88
Shares Outstanding (M)66.8066.8066.80
Fair Value$26.51$27.79$29.13
Upside / Downside-29.61%-26.20%-22.65%

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