Laureate Education (LAUR) has been in focus after reporting 9% third quarter revenue growth, a 7% rise in new enrollments year to date, higher full year revenue guidance and an expanded share repurchase plan.

The share price has moved to US$34.77 after the earnings update, with a 15.40% 90 day share price return and a 72.90% total shareholder return over the past year suggesting momentum has been building rather than fading.

If this earnings driven move has you thinking more broadly about education and career related themes, it could be a good moment to scan 23 top founder-led companies for fresh stock ideas.

With revenue of US$1.58b, net income of US$203.17m and a share price of US$34.77 that sits below some analyst targets, the key question is whether Laureate is still undervalued or if the market is already accounting for potential future growth.

Most Popular Narrative: 8.9% Undervalued

Laureate’s most followed narrative pegs fair value at about $38.17 per share, compared with the current $34.77. This frames this earnings update in a valuation gap.

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, which is likely to drive sustained enrollment and revenue growth over the next several years.

Read the complete narrative. Read the complete narrative.

Curious what sits behind that fair value uplift? The narrative leans heavily on multi year revenue expansion, fatter margins and a future earnings multiple that assumes real staying power.

Result: Fair Value of $38.17 (UNDERVALUED)

However, this hinges on Mexico and Peru remaining supportive markets, and on new campuses and online programs avoiding the kind of cost overruns that squeeze margins.

Build Your Own Laureate Education Narrative

If you see this story differently or prefer to work from your own numbers, you can test the data and build a custom thesis in just a few minutes: Do it your way

A good starting point is our analysis highlighting 2 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.