Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Education Management Corporation (EDMCQ) previously functioned as a prominent provider of higher education across North America. The institution offered a diverse range of academic programs, facilitating students' pursuit of both undergraduate and graduate degrees, as well as various specialized non-degree certifications. These educational opportunities were delivered through traditional campus settings and online learning platforms, covering numerous fields such as business, culinary arts, design, education, fashion, health sciences, information technology, legal studies, media arts, and psychology and behavioral sciences. Founded in 1962, the company's corporate headquarters were situated in Pittsburgh, Pennsylvania. However, on June 29, 2018, Education Management Corporation voluntarily commenced Chapter 7 liquidation proceedings, filing a petition with the U.S. Bankruptcy Court for the District of Delaware. This dissolution process is currently being jointly overseen with The Art Institute Of Philadelphia Limited Partnership.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. Specifically, the stock is undervalued on EV/EBITDA.