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Grand Canyon Education has the Highest EV/EBITDA Ratio in the Education Services Industry (LOPE, DV, STRA, CPLA, LRN)

By Nick Russo

Below are the three companies in the Education Services industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Grand Canyon Education ranks highest with a an EV/EBITDA ratio of 13.67. DeVry is next with a an EV/EBITDA ratio of 12.65. Strayer Education ranks third highest with a an EV/EBITDA ratio of 11.99.

Capella Education follows with a an EV/EBITDA ratio of 9.54, and K12 rounds out the top five with a an EV/EBITDA ratio of 6.45.

SmarTrend recommended that subscribers consider buying shares of Grand Canyon Education on October 28th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $43.14. Since that recommendation, shares of Grand Canyon Education have risen 88.5%. We continue to monitor Grand Canyon Education for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio grand canyon education DeVry strayer education capella education k12

Ticker(s): LOPE DV STRA CPLA LRN