IDP Education Ltd
OTC:IDPUF
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (20.1), the stock would be worth $3.89 (56% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 12.9 | $2.5 |
0%
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| 3-Year Average | 20.1 | $3.89 |
+56%
|
| 5-Year Average | 26.5 | $5.14 |
+105%
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| Industry Average | 17.6 | $3.4 |
+36%
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| Country Average | 16.8 | $3.25 |
+30%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$1.5B
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/ |
Jan 2026
AU$95.4m
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= |
|
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$1.5B
|
/ |
Jun 2026
AU$118.4m
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= |
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$1.5B
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/ |
Jun 2027
AU$147.6m
|
= |
|
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$1.5B
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/ |
Jun 2028
AU$178m
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
|
IDP Education Ltd
OTC:IDPUF
|
968.6m USD | 12.9 | 125.5 | |
| ZA |
A
|
Advtech Ltd
JSE:ADH
|
23.6B ZAR | 12.8 | 18.4 | |
| ZA |
S
|
Stadio Holdings Ltd
JSE:SDO
|
10B ZAR | 19.3 | 30.5 | |
| CN |
|
New Oriental Education & Technology Group Inc
NYSE:EDU
|
8.2B USD | 6.7 | 21.5 | |
| ZA |
C
|
Curro Holdings Ltd
JSE:COH
|
8.1B ZAR | 12.3 | 402.5 | |
| CN |
|
TAL Education Group
NYSE:TAL
|
6.6B USD | 15.9 | 23.7 | |
| US |
|
Graham Holdings Co
NYSE:GHC
|
4.9B USD | 17.3 | 17 | |
| US |
|
Duolingo Inc
NASDAQ:DUOL
|
4.7B USD | 25 | 11.3 | |
| US |
|
PowerSchool Holdings Inc
NYSE:PWSC
|
4.7B USD | 370.4 | -83.6 | |
| US |
|
Bright Horizons Family Solutions Inc
NYSE:BFAM
|
4.5B USD | 16.7 | 23.5 | |
| US |
|
Grand Canyon Education Inc
NASDAQ:LOPE
|
4.5B USD | 13.4 | 20.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10.7 |
| Median | 16.8 |
| 70th Percentile | 24.5 |
| Max | 6 797.5 |
Other Multiples
IDP Education Ltd
Glance View
IDP Education Ltd., a beacon in the international education sector, has carved out a significant niche by facilitating academic journeys across borders. Founded as a collaborative initiative by Australian universities, IDP has grown exponentially to become one of the world's leading student placement services. The company orchestrates a seamless experience for students aspiring to pursue higher education abroad, focusing predominantly on English-speaking destinations like Australia, the United Kingdom, and the United States. By leveraging its expansive network of over 100 offices in 32 countries, IDP offers personalized counseling and assistance in course selection, application processes, and visa procurement. This ensures that each student is matched with an institution that best fits their aspirations and potential. One of the key features that bolster IDP’s standing is its co-ownership of the IELTS test, a globally recognized English proficiency examination, that serves as a vital stepping stone for students to enter English-centric academia. The company’s revenue model is a testament to its strategic positioning in the education sector. Primarily, IDP generates income from service fees paid by educational institutions for every student successfully placed, creating a commission-based framework that incentivizes successful student-school partnerships. This model not only encourages IDP to maintain high placement standards and robust relationships with educational partners but also aligns their interests tightly with the success of their students. Moreover, IDP derives a significant slice of its revenue from the administration and co-ownership of IELTS. As global demand for English competency certification continues to rise, IDP benefits from the escalating number of test-takers seeking to fulfill the linguistic admission criteria of international universities. This dual-channel revenue stream effectively positions IDP Education as a cornerstone of the global education and student mobility industry, underscored by a symbiotic relationship with the educational aspirations of students worldwide.