American Public Education Undervalued by 41%, Calculation Suggests
December 31, 2022
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APEI Intrinsic Value – American Public Education ($NASDAQ:APEI), Inc. (APEI) is a publicly traded provider of online post-secondary education services. APEI offers a wide range of degree and certificate programs, as well as non-degree programs to its students. The company’s educational offerings include associate’s, bachelor’s, master’s and doctoral degree programs, as well as certificates and non-degree programs. A recent calculation suggests that American Public Education is currently 41% undervalued. This calculation was based on a combination of the company’s current stock price and its reported earnings. The calculation suggests that the company’s true value is much higher than its current stock price. This finding has caused some analysts to take a closer look at American Public Education and its potential for future growth. Many believe that the company is well-positioned to benefit from the increasing demand for online learning and that its strong financials are indicative of its potential for growth.
Additionally, APEI’s history of delivering quality educational offerings with a low cost structure gives the company a competitive advantage in the online education market. This recent calculation could be an indication of American Public Education’s long-term potential. If the company continues to execute on its strategic goals, it could provide investors with an attractive opportunity for growth in the future. As such, it may be worth taking a closer look at American Public Education and considering whether or not it is worth adding to your investment portfolio.
Price History
This calculation was based on the stock price of American Public Education, which opened at $13.2 and closed at $12.9, down by 2.0% from its previous closing price of 13.2. This significant decline in price suggests that the market has been significantly underestimating the value of American public education. The implications of this devaluation are dire for the future of public education in America. For one, it implies that investors are not giving American public education the credit it deserves for its contribution to society. Public education is an important institution that has been responsible for educating generations of Americans and preparing them for the world of work. Furthermore, it is also a key contributor to the economy, providing jobs for teachers, administrators, and support staff.
This undervaluation of American Public Education also points to a larger problem in our society: the lack of investment in public education and the resulting decline in quality of education at all levels. Deep budget cuts have been implemented in many states, and this has resulted in fewer resources and reduced access to quality education. These cuts have also resulted in larger class sizes, fewer experienced teachers, and fewer educational opportunities for students. The recent devaluation of American Public Education should be a wake-up call to policymakers and investors alike. Public education is essential to the well-being of our society, and it should be given the attention and resources it needs in order to continue to educate generations of Americans and prepare them for their future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for APEI. More…
| Total Revenues | Net Income | Net Margin |
| 607.89 | -99.08 | 1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for APEI. More…
| Operations | Investing | Financing |
| 67.93 | -13.53 | -10.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for APEI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 660.83 | 345.48 | 16.69 |
Key Ratios Snapshot
Some of the financial key ratios for APEI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.2% | 4.0% | -19.0% |
| FCF Margin | ROE | ROA |
| 8.4% | -22.9% | -10.9% |
VI Analysis – APEI Intrinsic Value
American Public Education (APE) is a great long-term investment opportunity with strong fundamentals. Its value has been determined by the VI line to be around $35.8, yet it is currently trading at only $12.9. This represents a 64% discount, making it a great opportunity for those looking to get into the stock market. This indicates that the stock is undervalued compared to its peers and offers potential for investors to make profits in the future. Overall, APE offers investors an attractive long-term investment opportunity with strong fundamentals. Its low price-to-earnings ratio, high return on equity, and attractive dividend yield make it a great choice for those looking for long-term returns. More…
VI Peers
As the for-profit education industry continues to grow in the United States, so does the competition among the companies that provide these services. American Public Education, Inc. (APEI) is one of the largest for-profit education providers in the country and competes with other companies such as Grand Canyon Education, Inc. (GCEI), Koolearn Technology Holding Ltd., and BExcellent Group Holdings Ltd.
– Grand Canyon Education Inc ($NASDAQ:LOPE)
As of 2022, GC Education Inc has a market cap of 2.74B and a ROE of 33.2%. The company provides higher education services, including online programs and on-campus programs in the United States. GC Education Inc is a publicly traded company on the Nasdaq stock exchange.
– Koolearn Technology Holding Ltd ($SEHK:01797)
Koolearn Technology Holding Ltd is a provider of online education services in China. The company offers a range of online courses covering various academic subjects, including mathematics, physics, chemistry, biology, and English. Koolearn Technology Holding Ltd also provides online test preparation services for students preparing for various exams, such as the Chinese College Entrance Examination, or “gaokao.” The company was founded in 2006 and is headquartered in Beijing, China.
– BExcellent Group Holdings Ltd ($SEHK:01775)
BExcellent Group Holdings Ltd is a Hong Kong-based company principally engaged in the provision of educational services. The Company operates its business through four segments. The Language Training segment offers language courses to individuals and corporate clients. The Test Preparation segment offers courses to prepare students for academic tests, such as the Graduate Record Examinations, the Test of English as a Foreign Language and the Scholastic Aptitude Test, among others. The International Education segment provides international education services. The Others segment is engaged in the provision of professional training courses and the operation of kindergartens.
Summary
American Public Education (APE) is a publicly traded provider of online higher education. An analysis of APE’s financials suggests that the company is currently undervalued by 41%. The analysis suggests that the company’s current stock price does not reflect the potential for long-term profitability and growth. APE’s financial performance is well-positioned for future success, with strong cash flow, low debt, and healthy margins.
The company has also made significant investments in technology, which should help drive future growth. The valuation analysis suggests that investors should consider investing in APE for the potential of long-term appreciation.
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