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

We came across a bullish thesis on Laureate Education, Inc. on Asymmetric Alpha’s Substack. In this article, we will summarize the bulls’ thesis on LAUR. Laureate Education, Inc.’s share was trading at $29.79 as of October 14th. LAUR’s trailing and forward P/E were 18.68 and 15.67 respectively according to Yahoo Finance.

Laureate Education (LAUR) has emerged as a compelling investment following a transformative restructuring that shifted the company from a debt-laden global operator to a focused, profitable private university network in Mexico and Peru. Historically, LAUR expanded aggressively across 25+ countries under founder Douglas Becker, funded by significant leverage, which ultimately strained the company amid FX risk, regulatory hurdles, and operational complexity. The IPO in 2017 failed to meet expectations, but the transition to new CEO Eilif Serck-Hanssen in 2018 initiated a decisive simplification strategy, divesting underperforming assets, paying down debt, and flipping LAUR to a net cash position. This foundation has enabled a sustainable growth path.

Today, LAUR operates a “Mass Premium” model, running affordable private universities with a focus on high-margin programs in medicine, dentistry, and veterinary studies, serving approximately 420,000 students across Mexico and Peru. While these institutions do not match elite global universities, QS ratings emphasize employability, with over 90% of graduates finding work. The company continues to invest strategically, with $40–50 million in annual capex supporting the opening of new campuses, expected to reach steady-state revenue in five to six years, while maintaining strong 9% constant currency EBITDA growth.

LAUR’s combination of growth and profitability outpaces peers, with a 3-year revenue CAGR of 13% and EBIT margins of 24%, yet the stock trades at 8.3x EV/EBITDA—well below comparables like ATGE and LOPE—highlighting a valuation disconnect. Shareholder-friendly actions, including $200 million in share repurchases, reinforce confidence. With strategic optionality in healthcare education and campus expansion, manageable risks from FX, regulatory changes, and execution, LAUR presents an attractive risk/reward, with a base case target of $34 per share and potential upside to $37, representing roughly 22% appreciation from current levels.

Previously we covered a bullish thesis on Coursera, Inc. (COUR) by Unemployed Value Degen in November 2024, which highlighted the company’s high-margin platform, rapid user growth, AI-focused microcredentials, and partnerships with over 350 universities. The stock has appreciated approximately 29.24% since coverage, as Coursera’s growth played out. The thesis still stands, while Laureate Education, Inc. (LAUR) emphasizes restructuring-driven value, high-margin programs, and disciplined expansion in Mexico and Peru.

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Disclosure: None.