Professional Documents
Culture Documents
Table of Contents
Overview
Overview
Parchman, Vaughan & Company, LLC is happy to share with you our quarterly summary of the earnings
and other multiples of publicly traded education firms, as well as select merger, acquisition, and divestiture
announcements.
We caution that many factors affect the valuation of firms and these multiples are, at best, a guidepost for
how the equity market views the industry, specifically only its publicly traded participants. Growth rates,
return on capital invested, visibility of earnings, and a host of other elements influence valuation.
210
190
170
150
130
110
90
70
50
S&P 500
Corporate Training
U.S. Post-Secondary
K-12 Education
Other Education
Ticker
APEI
APOL
BPI
CPLA
CECO
COCO
DV
EDMC
LOPE
ESI
LINC
NAUH
STRA
UTI
02/27/2015
03/25/2015
03/10/2015
02/12/2015
03/04/2015
02/03/2015
02/06/2015
01/28/2015
02/19/2015
01/22/2015
03/10/2015
01/08/2015
02/06/2015
02/06/2015
Price
Enterprise
Market Cap ($M)
(As of 3/27/15) Value ($M)
$30.78
$19.20
$9.43
$66.81
$5.25
$0.01
$33.18
$0.30
$43.69
$6.79
$2.28
$3.50
$59.93
$9.56
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
Revenue Growth Margin TEV/Revenue TEV/Revenue TEV/EBITDA
NTM
LTM
NTM
TEV/EBITDA Price/Earnings Price/Earnings
$424
$1,209
$194
$714
$123
$74
$1,786
$999
$1,907
$175
$75
$60
$595
$183
$530
$2,066
$428
$816
$354
$1
$2,117
$38
$2,042
$159
$55
$88
$653
$237
11.6%
(28.9%)
(34.0%)
0.0%
(50.2%)
NA
(8.0%)
(17.7%)
35.2%
NA
(19.3%)
7.5%
(20.6%)
(8.5%)
28.4%
13.1%
19.4%
21.2%
(0.4%)
7.4%
19.7%
18.8%
27.9%
4.3%
23.4%
16.0%
24.5%
12.2%
1.2x
0.4x
0.2x
1.7x
0.2x
NA
0.9x
NA
3.0x
NA
0.3x
0.5x
1.5x
0.4x
1.2x
0.4x
0.2x
1.6x
0.3x
NA
0.8x
NA
3.0x
NA
0.3x
0.5x
1.4x
0.4x
5.1x
2.0x
2.7x
7.7x
NM
NA
5.5x
NA
9.9x
NA
9.0x
4.9x
6.1x
5.1x
5.1x
2.1x
2.4x
7.4x
NM
NA
5.1x
NA
9.9x
NA
7.9x
4.6x
5.8x
5.5x
13.4x
11.4x
24.6x
20.7x
NA
NA
12.8x
6.0x
17.9x
4.6x
NA
13.9x
14.5x
81.8x
13.7x
16.6x
27.7x
18.9x
NA
NA
12.0x
NA
16.1x
4.5x
NA
12.9x
16.9x
66.1x
$60
$608
$309
$1,907
$1
$685
$391
$2,117
(50.2%)
(11.1%)
(13.1%)
35.2%
(0.4%)
16.9%
19.1%
28.4%
0.2x
0.9x
0.5x
3.0x
0.2x
0.9x
0.5x
3.0x
2.0x
5.8x
5.3x
9.9x
2.1x
5.6x
5.3x
9.9x
4.6x
20.2x
13.9x
81.8x
4.5x
20.5x
16.4x
66.1x
Ticker
BFAM
ABCD
LRN
NORD
02/13/2015
03/17/2015
01/29/2015
01/14/2015
Price
Enterprise
Market Cap ($M)
(As of 3/27/15) Value ($M)
$51.69
$3.19
$15.99
$22.47
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
Revenue Growth Margin TEV/Revenue TEV/Revenue TEV/EBITDA
NTM
LTM
NTM
TEV/EBITDA Price/Earnings Price/Earnings
$4,309
$252
$522
$2,592
$3,187
$145
$614
$2,221
26.3%
(4.6%)
29.8%
73.0%
16.2%
14.6%
15.8%
27.9%
3.0x
NA
0.5x
5.3x
3.0x
NA
0.5x
5.2x
18.2x
NA
3.2x
20.7x
18.0x
NA
3.0x
20.1x
34.1x
NA
21.9x
49.0x
28.7x
NA
32.8x
29.8x
$252
$1,919
$1,557
$4,309
$145
$1,542
$1,417
$3,187
(4.6%)
31.1%
28.1%
73.0%
14.6%
18.6%
16.0%
27.9%
0.5x
3.0x
3.0x
5.3x
0.5x
2.9x
3.0x
5.2x
3.2x
14.0x
18.2x
20.7x
3.0x
13.7x
18.0x
20.1x
21.9x
35.0x
34.1x
49.0x
28.7x
30.4x
29.8x
32.8x
Chegg
Houghton Mifflin Harcourt
John Wiley & Sons Inc.
Pearson
Scholastic
Ticker
CHGG-US
HMHC
JW.A
PSO-US
SCHL
02/24/2015
02/26/2015
03/10/2015
02/27/2015
03/26/2015
Price
Enterprise
Market Cap ($M)
(As of 3/27/15) Value ($M)
$7.99
$23.04
$61.55
$21.95
$40.56
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
Revenue Growth Margin TEV/Revenue TEV/Revenue TEV/EBITDA
NTM
LTM
NTM
TEV/EBITDA Price/Earnings Price/Earnings
$575
$2,738
$4,080
$20,286
$1,429
$675
$3,275
$3,623
$17,764
$1,326
42.9%
6.7%
(0.4%)
1.6%
(15.2%)
NA
16.5%
26.2%
NA
1.5%
2.0x
2.1x
NA
2.5x
0.8x
1.9x
2.1x
NA
2.5x
0.8x
24.8x
11.7x
NA
16.5x
6.4x
24.2x
11.6x
NA
16.2x
6.2x
NA
NA
19.1x
20.5x
22.3x
354.6x
NA
20.3x
18.4x
19.9x
$575
$5,822
$2,738
$20,286
$675
$5,333
$3,275
$17,764
(15.2%)
7.1%
1.6%
42.9%
1.5%
14.7%
16.5%
26.2%
0.8x
1.9x
2.0x
2.5x
0.8x
1.8x
2.0x
2.5x
6.4x
14.9x
14.1x
24.8x
6.2x
14.5x
13.9x
24.2x
19.1x
20.6x
20.5x
22.3x
18.4x
103.3x
20.1x
354.6x
Ticker
Franklin Covey
Corporate Executive Board
GP Strategies
Learning Tree Intl
FC
CEB
GPX
LTRE
01/09/2015
02/05/2015
02/24/2015
02/10/2015
Price
Enterprise
Market Cap ($M)
(As of 3/27/15) Value ($M)
$17.18
$78.84
$36.74
$1.56
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
Revenue Growth Margin TEV/Revenue TEV/Revenue TEV/EBITDA
NTM
LTM
NTM
TEV/EBITDA Price/Earnings Price/Earnings
$313
$3,074
$738
($9)
$291
$2,640
$628
$21
20.4%
46.0%
25.0%
(8.4%)
12.6%
22.9%
11.5%
1.4%
1.3x
3.3x
1.3x
NA
1.2x
3.2x
1.3x
NA
7.5x
14.6x
NA
NA
7.1x
14.2x
NA
NA
17.5x
21.7x
25.5x
NA
17.2x
20.5x
22.0x
NA
($9)
$1,029
$526
$3,074
$21
$895
$459
$2,640
(8.4%)
20.7%
22.7%
46.0%
1.4%
12.1%
12.0%
22.9%
1.3x
2.0x
1.3x
3.3x
1.2x
1.9x
1.3x
3.2x
7.5x
11.1x
11.1x
14.6x
7.1x
10.6x
10.6x
14.2x
17.5x
21.6x
21.7x
25.5x
17.2x
19.9x
20.5x
22.0x
Other Education
Company Name
2U
Graham Holdings Company
Ticker
TWOU
GHC
02/27/2015
02/20/2015
Price
Enterprise
Market Cap ($M)
(As of 3/27/15) Value ($M)
$22.49
$1,043.00
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
Revenue Growth Margin TEV/Revenue TEV/Revenue TEV/EBITDA
NTM
LTM
NTM
TEV/EBITDA Price/Earnings Price/Earnings
$634
$6,723
$922
$6,075
97.3%
(12.0%)
NA
17.6%
7.6x
NA
7.8x
NA
NM
NA
NM
NA
NA
6.6x
NA
24.3x
$634
$3,679
$3,679
$6,723
$922
$3,499
$3,499
$6,075
(12.0%)
42.6%
42.6%
97.3%
17.6%
17.6%
17.6%
17.6%
7.6x
7.6x
7.6x
7.6x
7.8x
7.8x
7.8x
7.8x
NA
NA
NA
NA
NA
NA
NA
NA
6.6x
6.6x
6.6x
6.6x
24.3x
24.3x
24.3x
24.3x
66%
Acquirer Company
Target Company
Investcorp
Scholastic Corporation
Blackboard
Raffles Education Investment Pte Ltd.
PopExpert/Learn Capital Ventures/Expansion Ventures
Cruzeiro do Sul Educacional SA
Educinvest SPRL
iModules Software
Harris School Solutions
FrogTrade Ltd./YTL Education Ltd.
Union Graduate College
Strategic Products & Services/Court Square Capital Partners
Myongji Hospital
Lerner Publishing Group
Radnor House School Ltd./Albion Ventures
Hobsons
Certica Solutions/Brook Venture Management
Renaissance Learning
PeopleAdmin
Abila
Peterson's Nelnet
Oxford City Football Club
Education Corporation of America
Fluent
Alma
Invoke Solutions
Teaching Strategies
Revelstoke Capital Partners
Wey Education
Zenith Education Group/Educational Credit Management Corp.
FF&P Private Equity Ltd.
R.R. Donnelley & Sons Co
University of Iowa
Zaner-Bloser
Brentwood Associates
K-12 Education
Educational Content and Services (Int'l)
Educational Content and Services
Post-Secondary (Int'l)
Corporate Training
Post-Secondary (Int'l)
Educational Content and Services (Int'l)
Educational Content and Services
Educational Content and Services
Educational Content and Services (Int'l)
Post-Secondary
Educational Content and Services
Post-Secondary (Int'l)
Educational Content and Services
K-12 Education (Int'l)
Educational Content and Services
Educational Content and Services
Educational Content and Services
Educational Content and Services
Educational Content and Services
Educational Content and Services
Educational Content and Services
Post-Secondary
Educational Content and Services
Educational Content and Services
Educational Content and Services
Educational Content and Services
Corporate Training
K-12 Education (Int'l)
Post-Secondary
Educational Content and Services (Int'l)
Educational Content and Services
Post-Secondary
Educational Content and Services
Educational Content and Services
Acquisition
Price ($M)
$405.0 - Pending
NA
NA
$15.7 - Pending
NA
NA
NA
NA
NA
NA
NA - Pending
NA
NA - Pending
NA
NA
NA
NA
NA
NA
NA
NA
$7.0 - Pending
NA
NA
NA
NA
NA
NA
$1.2 - Pending
$24.0
NA
$261.0 - Pending
NA - Pending
NA
NA
10