Laureate Education (LAUR) has recently drawn attention after reporting low student enrollment and a drop in earnings per share. Investors are closely watching management's ability to steer the company toward more profitable opportunities as these trends develop.

Despite recent worries over student numbers and earnings, Laureate Education’s share price has steadily climbed, delivering an impressive 63% return so far this year and an 88% total shareholder return over the past twelve months. Momentum appears to be building, as long-term investors have seen more than triple their money in five years.

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But with shares riding high after these gains, the key question is whether Laureate Education remains undervalued or if the market has already factored in the company’s next leg of growth. Could there still be a buying opportunity?

Most Popular Narrative: 4.5% Undervalued

With the most recent consensus narrative placing Laureate Education's fair value at $31.00 per share versus its last close of $29.62, the market is priced just below what analysts project. This positions Laureate in a narrow undervalued band and is catching investor attention as the gap remains modest.

Ongoing expansion into high-growth Latin American markets (Mexico, Peru) through new campus openings and targeted capacity investments leverages rising demand for private tertiary education. This is likely to drive sustained enrollment and revenue growth over the next several years.

The narrative's math is not what you may expect. An aggressive bet on ongoing revenue expansion, stronger profits, and a future earnings multiple that challenges the sector's norms is at play. Curious how all these ambitions could add up to justify that price? Delve into the full projections hidden behind this valuation call.

Result: Fair Value of $31.00 (UNDERVALUED)

However, a sharp downturn in enrollment or unexpected regulatory shifts in Mexico and Peru could quickly change the growth story for Laureate Education.

Build Your Own Laureate Education Narrative

If you want to dig into the numbers yourself and build a perspective that matches your own outlook, the tools are there for you. Why not Do it your way?

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Laureate Education.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.