Strategic Education (STRA) DCF: History & Chart

Strategic Education, Inc.(STRA)

Education & Training Services · Herndon, VA

$79.18-0.10 (-0.12%)

Delayed quote: Oct 6, 2026, 3:05 PM EDT

About Strategic Education, Inc.

Strategic Education, Inc. (SEI) delivers a broad spectrum of educational services, encompassing both traditional campus-based and online post-secondary learning, alongside programs designed to cultivate career-ready competencies. The company operates through three principal divisions: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. Within its U.S. Higher Education portfolio, SEI manages Strayer University, which provides undergraduate and graduate degrees in disciplines such as business administration, accounting, information technology, education, healthcare administration, public administration, and criminal justice, available at physical locations across the eastern United States and through distance learning. It also offers certificate-level web and mobile application development courses via Hackbright Academy and Devmountain, as well as an executive MBA entirely online from the Jack Welch Management Institute. Another key institution is Capella University, an online-only post-secondary provider catering to working adults with bachelor's, master's, and doctoral programs spanning arts and sciences, business and technology, counseling and human services, education, nursing and health sciences, psychology, and public service leadership. Internationally, the Australia/New Zealand segment features Torrens University, which delivers undergraduate, graduate, research-focused, and specialized degrees, primarily in business, design and creative technology, health, hospitality, and education, accessible both online and at its Australian campuses. This division also includes Think Education, a vocational training organization, and New Zealand's Media Design School, renowned for its industry-aligned courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising. Furthermore, SEI's Education Technology Services offers Workforce Edge, a platform that aids employers in managing education benefits, and Sophia Learning, which facilitates more cost-effective education benefit initiatives. Founded in 1892, Strategic Education, Inc. maintains its corporate headquarters in Herndon, Virginia.

Herndon, VA

6,134 employees

www.strategiceducation.com

Consumer Defensive / Education & Training Services

Sector: Consumer Defensive
Industry: Education & Training Services
CEO: Karl McDonnell

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Strategic Education, Inc. (STRA) DCF Valuation

Price is BELOW the estimated range

$89.85

$169.30

Model scenario range

$79.18

Today's price

TGM's two-stage DCF values Strategic Education, Inc. (STRA) between $89.85 and $169.30 depending on assumptions, with a base case of $120.42. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.

What would today's price require?

Growth the price assumes-3.6%/yr

Actual FCF growth, last 5 years+10.1%/yr

$79.18 is justified only if free cash flow grows about -3.6% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.

Scenario	FCF growth (fading to 2.5%)	Discount	Value / share
Conservative	3.7%/yr	8.5%	$89.85
Base case	6.7%/yr	7.5%	$120.42
Optimistic	9.7%/yr	6.5%	$169.30
Third-party model estimate (FMP)	independent reference · retrieved Oct 6, 2026 · assumptions not provided		$178.91

The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.

Price|PE Ratio|FCF Yield|All Metrics

Current Price

$79.18

Market-Implied Growth

-3.6%/yr

vs +10.1% 5Y actual

Model Scenario Range

$89.85 – $169.30

model output — not a price target

STRA DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for STRA (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.

FCF Growth Rate6.7%/yr

Historical FCF CAGR: 3Y 55.9% · 5Y 10.1% · 10Y 14.6%

Discount Rate (WACC)7.5%

Terminal Growth2.5%

Projection Years10yr

Base inputs: FCF $105.8M · 0.02B shares · net cash $140.8M

Estimated Fair Value

$120.42

+52.1% vs $79.18

Current price$79.18

Third-party model estimate (FMP)$178.91

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $79.18; red = below. Your current case is outlined.

WACC ↓ / Terminal →	1.50%	2.00%	2.50%	3.00%	3.50%
5.5%	$155	$173	$198	$233	$285
6.5%	$124	$136	$150	$167	$191
7.5%	$104	$112	$120	$131	$145
8.5%	$89.86	$95.01	$101	$108	$117
9.5%	$79.08	$82.86	$87.17	$92.14	$97.94