Strategic Education Inc (STRA) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Strategic Education Inc stock $107, price $52.20, upside +105.8%, quality 75 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $43.29 – $114.80 · fair‑value band $78.11 – $133.90 · the $52.20 price screens below the $107.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Strategic Education, Inc. provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services.
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It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute.
In addition, the company operates Capella University, an online accredited institution of higher education; Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization and higher education provider; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media, artificial intelligence, and creative advertising.
It offers Workforce Edge, an administration platform that enables employers to manage and streamline their education benefits programs; and Sophia Learning, which offers low-cost online general education-level courses.
Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.
Stock analysis
Strategic Education Inc (STRA) currently trades at $52.20, while our model-based Fair Value estimate is $107.41, implying the stock looks roughly 51% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $122.61 per share, and 20 of the 26 models we run sit above the $52.20 price.
Bear case: the Dividend Discount group reads lowest at $40.36, and 6 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $78.11 (bear) to $133.90 (bull), the price of $52.20 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 75/100 (high quality), in the Consumer Defensive sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Strategic Education Inc reported revenue of $1.3B in FY2025 versus $1.1B in FY2021, a compound +2.9%/yr. Reported net income was $127M in FY2025, compounding +23.1%/yr from FY2021.
Key figures
Market cap $1.3B Small · P/E ratio 8.7 · P/S ratio 1.01 · EPS (TTM) $5.99 · Dividend yield 4.6% · Net margin 10.5% · Return on equity 8.2% · Return on assets (EBIT) 5.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 51 out of 100 (low confidence).
What moves the price
The share trades about 40% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 31% fair-value upside, at 106%, STRA screens cheaper than that median.
Fair Value models
Bear$78.11Fair Value $107.41Bull$133.90
Price $52.20 · Upside +105.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($3.07 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $160,000 and none bought.
SaleChrista HokensonCHIEF HUMAN RESOURCES OFFICER2,000 shares at $80.00$160,000Jun 4, 202610b5-1 plan
SaleG Thomas Waite IIIDirector666 shares at $77.68$51,735May 5, 2026
BuyMichael ThawleyDirector665 shares at $72.71$48,352Apr 24, 2026
SaleLizette Benedi HerraizGENERAL COUNSEL2× since Mar 13, 2026: 10,580 shares, avg. $79.94$845,789Mar 18, 202610b5-1 plan
BuyRobert S SilbermanCHAIRMAN, Director718 shares at $80.82$58,029Mar 13, 2026
SaleDaniel Wayne JacksonCHIEF FINANCIAL OFFICER13,000 shares at $82.37$1.1MMar 2, 202610b5-1 plan
SaleRaymond Karl McDonnellCHIEF EXECUTIVE OFFICER, Director38,840 shares at $75.35$2.9MFeb 24, 202610b5-1 plan
SaleRobert R GruskyDirector1,403 shares at $80.03$112,282Dec 11, 2025
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.3%
Start year 2020 (pandemic). Over 10 years: +11.3% a year
Revenue growth 29 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+14.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.9%
Dividend (yield on the price)4.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8.6% vs 4.1%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.11% → 16%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−9.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −11.7% a year for the price and +0.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (94 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate business quality shows steady expansion in U.S. education technology and healthcare programs as main strength, while limited innovation signals and modest returns on equity form the key weakness.
Main risk: Tighter rules on international students in Australia represent the biggest risk to the business, directly hitting margins through further non-cash impairments that offset domestic segment gains.
Strategic Education shows steady expansion in Education Technology Services and its U.S. healthcare programs, yet a sizable non-cash impairment reflects tighter rules on international students in Australia. Our models see the business as undervalued given these contrasts. Will the planned investments and efficiency gains lift overall performance, or will regulatory limits abroad keep offsetting the stronger domestic segments?
Compare Strategic Education Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Education & Training Services · 108 stocks
Beats the industry median on 15/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score75 · Top 25%
Fair Value upside+105.8% · Top 25%
Profitability
Return on equity (12 months)8.2% · Above median
Return on assets6.2% · Above median
Net margin (12 months)10.5% · Above median
Operating margin (12 months)15.7% · Above median
Growth and dividend
Revenue growth (quarter YoY)4.9% · Above median
Dividend yield (12 months)4.6% · Above median
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Education & Training Services median · lower = cheaper
P/E (12 months)8.7× · Cheapest 25%
P/B0.79× · Cheaper than median
P/S (12 months)1.01× · Cheaper than median
Price / free cash flow (fiscal year)8.4× · Cheaper than median
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Is Strategic Education Inc (STRA) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $107.41 versus a price of $52.20, about +106% upside (undervalued).
What is the fair value of STRA?
Our model-based fair value for Strategic Education Inc is $107.41 (as of Nov 6, 2026), built from audited fundamentals. The current price: $52.20.
What is the quality score of STRA?
Strategic Education Inc has a Quality Score of 75/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Strategic Education Inc (STRA)?
Our model-based price target is the fair value of $107.41 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $78.11, optimistic scenario $133.90. It is a calculation from audited fundamentals, not an analyst target.
What is the Strategic Education Inc stock forecast for 2026?
Our models put fair value at $107.41, about +106% upside versus a price of $52.20 (undervalued). Cautious scenario $78.11, optimistic scenario $133.90. The calculation is refreshed regularly with new filings.
What is the revenue of Strategic Education Inc (STRA)?
Strategic Education Inc reported trailing-twelve-month revenue of about $1.3B (latest available figure, as of Nov 6, 2026).
Does Strategic Education Inc pay a dividend?
Strategic Education Inc currently shows a dividend yield of 4.60% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Strategic Education Inc (STRA) and when is the ex-dividend date?
Strategic Education Inc pays a dividend of $2.40 per share a year, a dividend yield of 4.6%. The last ex-dividend date was Sep 4, 2026. A dividend has been paid every year since 2017. The payout ratio is 36.0% of earnings (on adjusted earnings, reported 40.1%). Free cash flow covers the dividend 2.89 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Strategic Education Inc (STRA)?
For today's price to be fair in a discounted-cash-flow model, Strategic Education Inc would have to grow free cash flow by -9.6 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.3 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of STRA use?
Our models discount Strategic Education Inc at 9.8 %: a base by market capitalisation (small), damped by beta 0.48, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Strategic Education Inc that is -9.6 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Strategic Education Inc (STRA) delivered so far?
Over the past 5 years revenue at Strategic Education Inc grew +4.3 % a year. The price currently implies free-cash-flow growth of -9.6 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Strategic Education Inc (STRA) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Strategic Education Inc (-9.6 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Strategic Education Inc (STRA)?
The free-cash-flow yield on the price is 13.57 %: that much free cash flow Strategic Education Inc produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Strategic Education Inc (STRA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Strategic Education Inc it is $107.41 per share (as of Nov 6, 2026), against a price of $52.20. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Strategic Education Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, STRA trades below its calculated fair value: price $52.20, fair value $107.41, a gap of about +106% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of STRA?
No. The price is what the market pays today ($52.20); the fair value is what the company's own numbers justify ($107.41). For Strategic Education Inc the two are $55.21 per share apart. That gap is exactly why we show both numbers side by side.
How much is Strategic Education Inc worth?
The market values Strategic Education Inc at about $1.3B (market capitalisation, as of Nov 6, 2026). Per share that is $52.20; our models calculate a fair value of $107.41 per share.
What do the bullish and bearish scenarios say about STRA?
Our models span a range for Strategic Education Inc: cautious scenario $78.11, base $107.41, optimistic $133.90 per share (as of Nov 6, 2026, price $52.20). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of STRA?
Strategic Education Inc trades at a price-to-earnings ratio of 8.7 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $107.41 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 8.5 (reported for FY2025: 9.4). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 8 of the years ex one-offs: 31.1. Other multiples: PEG 0.6, P/B 0.8, P/S 1.0, EV/EBITDA 4.9.
What is the PEG ratio of STRA?
The PEG ratio of Strategic Education Inc is 0.60 (P/E divided by earnings growth, as of Nov 6, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Strategic Education Inc (STRA)?
Balance-sheet figures for Strategic Education Inc (as of Nov 6, 2026): return on equity 8.2%, debt of 0.04 per unit of equity. They feed the Quality Score of 75/100, which measures business quality independently of the share price.
How far is STRA from its 52-week high?
Strategic Education Inc trades at $52.20, about 40% below its 52-week high of $86.98 and at the low of $52.20 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $107.41 is for.
Which stocks are comparable to Strategic Education Inc?
From the same area (Consumer Defensive) we also value New Oriental Education & Technology Group, Laureate Education, Inc, Covista Inc, Physicswallah Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Strategic Education Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $52.20, calculated fair value $107.41 (+106%), Quality Score 75/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of STRA calculated?
We run Strategic Education Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $107.41 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Strategic Education Inc currently trades 51% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Strategic Education Inc (STRA)?
The closing price on Nov 6, 2026 was $52.20. Our model-based fair value is $107.41, about +106% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Strategic Education Inc right now?
The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($78.11). The market is more pessimistic than our downside scenario.
Where does the earnings growth of Strategic Education Inc (STRA) come from?
Earnings per share at Strategic Education Inc grew +1.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.5 %, EBIT margin −2.7 %, tax rate +1.7 %, residual (interest, one-offs) +0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Strategic Education Inc
How large is the market capitalisation of Strategic Education Inc (STRA)?
The market capitalisation of Strategic Education Inc is $1.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Strategic Education Inc (STRA)?
The price-to-sales ratio of Strategic Education Inc is 1.01 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Strategic Education Inc (STRA)?
Earnings per share at Strategic Education Inc are $5.99 (price ÷ EPS = P/E 8.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Strategic Education Inc (STRA)?
The dividend yield of Strategic Education Inc is 4.6% (payout 36.0%, on adjusted earnings, reported 40.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Strategic Education Inc (STRA)?
The net margin of Strategic Education Inc is 10.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Strategic Education Inc (STRA)?
The return on equity (ROE) of Strategic Education Inc is 8.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Strategic Education Inc (STRA)?
On an EBIT basis the return on assets of Strategic Education Inc is 5.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Strategic Education Inc (STRA)?
The operating margin of Strategic Education Inc is 15.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Strategic Education Inc (STRA)?
Revenue at Strategic Education Inc is growing +4.9% versus a year earlier (3y avg +6.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Strategic Education Inc (STRA)?
Earnings per share at Strategic Education Inc are growing +24.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Strategic Education Inc (STRA) hold?
Strategic Education Inc holds more cash than debt, $31.6M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026