MINNEAPOLIS, Sept. 30 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper Jaffray
Senior Learning Services Research Analyst Mark Marostica recently released a
new report entitled: The Valuation Conundrum, Volume II, which is an update to
his initial report, The Valuation Conundrum: A Guide To Understanding
Postsecondary Education Company Valuation, released in January 2002. The new
report outlines the differences between the publicly-traded post-secondary
education companies and how to properly rank them in terms of investment
quality and valuation. In addition, Marostica maps out valuation differences
among the public post-secondary education companies, offers a historical
valuation analysis and discusses thoughts on future valuation trends for the
Marostica analyzed the following companies in the post-secondary education
group: Apollo Group, Inc. (APOL, Strong Buy, $43.63, #), Career Education
Corporation (CECO, Strong Buy, $46.74, #>), Corinthian Colleges, Inc. (COCO,
Strong Buy, $36.85, #>), DeVry (DV, not rated, $18.35), Education Management
Corporation (EDMC, Outperform, $43.438, #>), ITT Education (ESI, not rated,
$18.35), Strayer Education (STRA, not rated, $58) and Sylvan Learning Systems,
Inc. (SLVN, Outperform, $13.21, #>).
We ultimately believe investors will continue to value the strong
business fundamentals of post-secondary education companies, which include a
high level of revenue and earnings visibility, together with highly profitable
and predictable business models and a favorable post secondary education macro
About the Valuation Conundrum, Volume II Report
The cornerstone of Marostica's valuation analysis is his proprietary
attribute analysis and scoring methodology, which is used to first assign
scores to the various attributes of each post-secondary education company.
After assigning individual attribute scores for each company, he then
developed a composite attribute score for each company, with a higher
composite attribute score being more favorable. The next step in Marostica's
valuation analysis was to compare the composite attribute score of each
company with its current P/E-to-growth (PEG) ratio.
Marostica concluded the following from his analysis:
1) There is a strong correlation between a post-secondary education
company's composite attribute score and its PEG ratio -- companies
with higher attribute scores generally trade at higher PEG ratios.
According to Marostica's analysis, "Sixty one percent of the variation
in the PEG ratio is explained by the composite attribute scores."
2) This analysis will help investors identify and explain "valuation
disconnects" -- instances in which a company's attribute score is not
aligned with its PEG ratio.
3) This analysis will be useful in assessing the impact of an attribute
change on company valuation.
To request a copy of the report, please contact Susan Beatty, 612-303-5680
or email@example.com .
U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based
U.S. Bancorp (NYSE: USB), is a focused securities firm comprised of three
divisions: Equity Capital Markets, Fixed Income Capital Markets and Private
Advisory Services. The firm provides a full range of investment products and
services to individuals, institutions and businesses. The firm has over 120
offices in 23 states across the country. The Equity Capital Markets Division
focuses on the needs of growth companies in the health care, technology,
financial institutions, consumer and communications growth sectors. The firm
has a national reputation for its expertise in fundamental research and equity
and debt financing. The Fixed Income Capital Markets business provides bond
issuers, individual investors and institutional investors expertise in
investment banking, underwriting, trading, sales and research. The firm offers
innovative solutions in corporate and government debt financings with
particular expertise in corporate, health care/hospitals, real estate, higher
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Investment Opinion: Investment opinions are based on each stock's return
potential relative to the overall market*, not on an absolute return.
-- Strong Buy: Expected to outperform the relevant broader market index
over the next 6 to 12 months. An identifiable catalyst is present to
-- Outperform: Expected to outperform the relevant broader market index
over the next 12 to 18 months.
-- Market Perform: Expected to perform in line with the relevant broader
market index over the next 6 to 12 months.
-- Underperform: Expected to underperform the relevant broader market
index over the next 6 to 12 months.
* Broader market indices = Russell 2000 and S&P 500
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we recommend are typically more volatile than the overall stock market. We are
not recommending the
suitability of a particular stock for an individual
investor. Rather, it identifies the volatility of a particular stock.
-- Low: The stock price has moved up or down by more than 10% in a month
in fewer than 8 of the past 24 months.
-- Medium: The stock price has moved up or down by more than 20% in a
month in fewer than 8 of the past 24 months.
-- High: The stock price has moved up or down by more than 20% in a month
in at least 8 of the past 24 months. All IPO stocks automatically get
this volatility rating for the first 12 months of trading.
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Company's securities or may buy and sell the Company's securities on a
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This material is based on data obtained from sources we deem to be
reliable; it is not guaranteed as to accuracy and does not purport to be
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SOURCE U.S. Bancorp Piper Jaffray
/CONTACT: Susan Beatty, Public Relations of U.S. Bancorp Piper Jaffray,
/Web site: http://www.piperjaffray.com /
(USB APOL CECO COCO DV EDMC ESI STRA SLVN)
CO: U.S. Bancorp Piper Jaffray; U.S. Bancorp; Apollo Group, Inc.; Career
Education Corporation; Corinthian Colleges, Inc.; DeVry; Education
Management Corporation; ITT Education; Strayer Education; Sylvan Learning
IN: FIN EDU
SU: RTG INO
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2447 09/30/2002 10:22 EDT http://www.prnewswire.com