IDP Education Limited

ASX:IEL Stock Report

Market Cap: AU$1.5b

IDP Education Valuation

Is IEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AU$10.69
Fair Value
48.9% undervalued intrinsic discount
12
Number of Analysts

Below Fair Value: IEL (A$5.46) is trading below our estimate of fair value (A$10.69)

Significantly Below Fair Value: IEL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IEL?

Key metric: As IEL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IEL. This is calculated by dividing IEL's market cap by their current earnings.
What is IEL's PE Ratio?
PE Ratio34.1x
EarningsAU$44.51m
Market CapAU$1.52b

Price to Earnings Ratio vs Peers

How does IEL's PE Ratio compare to its peers?

The above table shows the PE ratio for IEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.8x
GEM G8 Education
7.6x10.65%AU$535.3m
EVO Embark Early Education
11.6x18.35%AU$122.9m
EDU EDU Holdings
9.4xn/aAU$82.8m
KME Kip McGrath Education Centres
14.5xn/aAU$33.1m
IEL IDP Education
34.1x23.61%AU$1.5b

Price-To-Earnings vs Peers: IEL is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

How does IEL's PE Ratio compare vs other companies in the Global Consumer Services Industry?

17 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IEL 34.1xIndustry Avg. 16.6xNo. of Companies36PE01224364860+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IEL is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the Global Consumer Services industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is IEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.1x
Fair PE Ratio31.1x

Price-To-Earnings vs Fair Ratio: IEL is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the estimated Fair Price-To-Earnings Ratio (31.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$5.46
AU$7.70
+41.03%
40.25%AU$16.00AU$4.50n/a12
Oct ’26AU$6.48
AU$7.70
+18.83%
40.25%AU$16.00AU$4.50n/a12
Sep ’26AU$5.91
AU$7.22
+22.09%
43.14%AU$16.00AU$4.50n/a13
Aug ’26AU$3.61
AU$6.45
+78.78%
59.44%AU$17.00AU$3.50n/a13
Jul ’26AU$4.02
AU$6.45
+60.55%
59.44%AU$17.00AU$3.50n/a13
Jun ’26AU$7.80
AU$14.70
+88.46%
22.97%AU$22.00AU$9.50n/a13
May ’26AU$8.93
AU$14.70
+64.61%
22.97%AU$22.00AU$9.50n/a13
Apr ’26AU$9.46
AU$14.70
+55.39%
22.97%AU$22.00AU$9.50n/a13
Mar ’26AU$10.05
AU$15.77
+56.91%
25.33%AU$22.00AU$9.50n/a13
Feb ’26AU$13.34
AU$18.17
+36.23%
17.57%AU$23.00AU$11.80n/a13
Jan ’26AU$12.63
AU$18.44
+45.99%
16.14%AU$23.00AU$11.80n/a13
Dec ’25AU$12.78
AU$18.53
+45.00%
15.01%AU$23.00AU$13.00n/a13
Nov ’25AU$13.99
AU$18.53
+32.46%
15.01%AU$23.00AU$13.00AU$5.6113
Oct ’25AU$15.95
AU$18.60
+16.59%
15.06%AU$23.00AU$13.00AU$6.4813
Sep ’25AU$16.18
AU$18.37
+13.55%
14.10%AU$23.00AU$13.00AU$5.9114
Aug ’25AU$15.09
AU$18.39
+21.87%
17.49%AU$23.00AU$13.00AU$3.6114
Jul ’25AU$14.88
AU$18.44
+23.95%
17.00%AU$23.00AU$13.00AU$4.0214
Jun ’25AU$15.95
AU$20.76
+30.14%
17.20%AU$25.50AU$15.00AU$7.8014
May ’25AU$15.89
AU$22.85
+43.80%
18.35%AU$29.45AU$16.00AU$8.9314
Apr ’25AU$17.92
AU$23.70
+32.28%
16.51%AU$29.45AU$16.00AU$9.4615
Mar ’25AU$19.22
AU$24.02
+24.96%
15.85%AU$29.45AU$17.00AU$10.0515
Feb ’25AU$19.29
AU$24.90
+29.08%
13.36%AU$27.85AU$16.50AU$13.3414
Jan ’25AU$20.03
AU$26.76
+33.60%
13.65%AU$31.20AU$19.00AU$12.6314
Dec ’24AU$22.86
AU$27.07
+18.42%
14.31%AU$31.20AU$18.00AU$12.7814
Nov ’24AU$22.06
AU$26.77
+21.33%
14.54%AU$31.20AU$18.00AU$13.9915
AU$7.7
Fair Value
29.1% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/04 21:03
End of Day Share Price 2025/11/04 00:00
Earnings2025/06/30
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

IDP Education Limited is covered by 16 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Josh KannourakisBarrenjoey Markets Pty Limited
Piers FlanaganBarrenjoey Markets Pty Limited
Sriharsh SinghBofA Global Research