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Adtalem Global Education (Adtalem Global Education) Intrinsic Value: DCF (Dividends Based) : $ (As of May. 28, 2024)


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What is Adtalem Global Education Intrinsic Value: DCF (Dividends Based)?

As of today (2024-05-28), Adtalem Global Education's intrinsic value calculated from the Discounted Dividend model is $.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Adtalem Global Education's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Adtalem Global Education is

The historical rank and industry rank for Adtalem Global Education's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Adtalem Global Education was 0.51. The lowest was 0.51. And the median was 0.51.

ATGE's Price-to-DCF (Dividends Based) is not ranked *
in the Education industry.
Industry Median: 0.65
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Adtalem Global Education Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Adtalem Global Education's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Adtalem Global Education Intrinsic Value: DCF (Dividends Based) Chart

Adtalem Global Education Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: DCF (Dividends Based)
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Adtalem Global Education Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: DCF (Dividends Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Adtalem Global Education's Intrinsic Value: DCF (Dividends Based)

For the Education & Training Services subindustry, Adtalem Global Education's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Adtalem Global Education's Price-to-DCF (Dividends Based) Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Adtalem Global Education's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Adtalem Global Education's Price-to-DCF (Dividends Based) falls into.



Adtalem Global Education Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.45%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
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3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Adtalem Global Education's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Dividends per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=*
=

Margin of Safety % (DCF Dividends Based) = (Intrinsic Value: DCF (Dividends Based)-Current Price) /Intrinsic Value: DCF (Dividends Based)
= ( - 65.54) /

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Adtalem Global Education  (NYSE:ATGE) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.


Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Adtalem Global Education Intrinsic Value: DCF (Dividends Based) Related Terms

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Adtalem Global Education (Adtalem Global Education) Business Description

Traded in Other Exchanges
Address
500 West Monroe Street, Suite 28, Chicago, IL, USA, 60661
Adtalem Global Education Inc is an American for-profit educational company that operates various university and educational programs. The company runs eight colleges and universities that specialize in business, medicine, education, and nursing degree programs. DeVry Education Group has over 90 campuses as well as online courses that offer associate, bachelor, and postgraduate degrees. Enrollment in its business colleges represents almost half of overall student enrollment, followed by technology and healthcare. The company derives the majority of its revenue from student enrollment fees using federal financial aid programs such as Pell Fund grants.
Executives
Maurice Herrera officer: Chief Marketing Officer 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Blake Simpson officer: SVP, Chief Comms Officer 500 W. MONROE, SUITE 1300, CHICAGO IL 60661
Lisa W Wardell director 5900 RYLAND DRIVE, BETHESDA MD 20817
Manjunath Gangadharan officer: VP, Chief Accounting Officer 600 WEST CHICAGO AVE., STE 400, CHICAGO IL 60654
William W Burke director 3868 MOCKINGBIRD LN, DALLAS TX 75205
Lyle Logan director ONE TOWER LANE, OAKBROOK TERRACE IL 60181
Evan Trent officer: SVP, Chief Strat. & Transform 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
William V Krehbiel director 500 W. MONROE, CHICAGO IL 60661
James Raymond Bartholomew officer: President, DeVry University 2449 MARCY AVENUE, EVANSTON IL 60201
Michael Betz officer: President, Walden University 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Cheryl James officer: SVP, CHRO 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Sharon O'keefe director C/O VOCERA COMMUNICATIONS, INC., 525 RACE STREET, SAN JOSE CA 95126
Michael W Malafronte director INTERNATIONAL VALUE ADVISERS, LLC, 717 FIFTH AVE, 10TH FLOOR, NEW YORK NY 10022
Georgette D. Kiser director 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505
Kenneth J Phelan director HUNTINGTON BANCSHARES INCORPORATED, 41 S. HIGH STREET, COLUMBUS OH 43215