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IDP Education Ltd
OTC:IDPUF

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IDP Education Ltd
OTC:IDPUF
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Price: 2.5 USD Market Closed
Market Cap: $695.8m

P/FCFE

46.5
Current
50%
More Expensive
vs 3-y average of 31

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
46.5
=
Market Cap
$1.2B
/
Free Cash Flow to Equity
AU$19.6m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
46.5
=
Market Cap
$1.2B
/
Free Cash Flow to Equity
AU$19.6m

Valuation Scenarios

IDP Education Ltd is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (31), the stock would be worth $1.66 (33% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-61%
Maximum Upside
No Upside Scenarios
Average Downside
42%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 46.5 $2.5
0%
3-Year Average 31 $1.66
-33%
5-Year Average 36.2 $1.95
-22%
Industry Average 23.2 $1.25
-50%
Country Average 18.1 $0.97
-61%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close

Market Distribution

In line with most companies in Australia
Percentile
70th
Based on 1 160 companies
70th percentile
35.4
Low
0.2 — 12.5
Typical Range
12.5 — 35.6
High
35.6 —
Distribution Statistics
Australia
Min 0.2
30th Percentile 12.5
Median 18.1
70th Percentile 35.6
Max 5 049.1

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.

IDPUF Intrinsic Value
3.73 USD
Undervaluation 33%
Intrinsic Value
Price $2.5
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