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Thursday, July 5, 2012

Undervalued Stock Detected (NASDAQ: EDMC)

Shares of EDMC fell by 6.44% or $-0.43/share to $6.25. NASDAQ is trading at a price to book ratio of 0.5. This indicates that the value of the company's underlying assets exceeds today's market price. The PEG is 0.92 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.3. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 299700 shares of EDMC exchange hands on a given day and today's volume is recorded at 212094. These financial metrics combined make this company seem undervalued. Lookout for any takeover chatter or takeover news regarding this stock as one of the bigger players may have an eye on this one.

Education Management Corporation (EDMC) is a provider of post-secondary education in North America, with approximately 158,300 enrolled students as of October 2010.