Laureate Education, Inc. (LAUR): A Bull Case Theory

We came across a bullish thesis on Laureate Education, Inc. on Value investing subreddit by SniperPearl. In this article, we will summarize the bulls’ thesis on LAUR. Laureate Education, Inc.'s share was trading at $27.55 as of September 9th. LAUR’s trailing and forward P/E were 16.50 and 17.39 respectively according to Yahoo Finance.

Laureate Education (LAUR) has transformed from a sprawling, debt-laden global network into a focused, profitable operator in Mexico and Peru, serving approximately 420,000 students across UVM, UAM, Cibertec, UPC, and UPN. The company fills a critical gap in higher education for middle- and lower-class families in Latin America, offering affordable private universities where free public options are highly selective and limited in quality.

LAUR’s strategy centers on a “Mass Premium” approach, emphasizing high-margin programs such as medicine, dentistry, and veterinary studies, which cater to strong local demand. Following a series of divestitures and a leadership change in 2018, the company streamlined operations, paid down debt, and converted to a net cash position, laying a foundation for sustainable growth. The business has demonstrated a compelling mix of growth and profitability, with a three-year revenue CAGR of ~13% and EBIT margins of 24%, outpacing peers like PRDO, STRA, and ATGE.

Near-term growth catalysts include a $40–50 million annual capex program and two new campuses expected to open in September 2025, alongside expansion in healthcare education, which offers optionality for higher-margin revenue. Shareholder value is further supported by active buybacks totaling $200 million. Despite these fundamentals, LAUR trades at 8.3x EV/EBITDA, below more comparable peers, suggesting a re-rating potential to 11–12x.

This implies a base-case price target of $34 and a bull-case of $37, representing roughly 22% upside. Risks include FX fluctuations, regulatory changes, reliance on scholarships, and execution of expansion plans, but these are mitigated by the company’s strong margins, cash position, and strategic focus, making LAUR an attractive investment with both upside optionality and downside protection.

Previously we covered a bullish thesis on Coursera, Inc. (COUR) by Unemployed Value Degen in November 2024, which highlighted its 162 million registered users, strong cash flow, AI-driven microcredentials, and upside from undervaluation. The stock has appreciated approximately 51% since our coverage as the thesis played out. SniperPearl shares a similar focus on education but emphasizes Laureate Education’s “Mass Premium” strategy, high-margin healthcare programs, and cash-flow-driven growth in Mexico and Peru.

Laureate Education, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held LAUR at the end of the first quarter which was 23 in the previous quarter. While we acknowledge the potential of LAUR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.