Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Miscellaneous Educational Service Providers industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Miscellaneous Educational Service Providers Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Miscellaneous Educational Service Providers Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Miscellaneous Educational Service Providers industry for Tuesday, April 18, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Miscellaneous Educational Service Providers industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

ATA Creativity Global(ADR)’s Value Grade

Value Grade:

ATA Creativity Global (ATA) is a China-based company mainly providing international educational services. The Company's main businesses include providing international educational experiences related to the cultivation and improvement of students' creativity. The Company's principal product and service are portfolio training services which it provide to students in China who are interested in studying art overseas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

ATA Creativity Global(ADR) has a Value Score of 61, which is considered to be undervalued.

When you look at ATA Creativity Global(ADR)’s price-to-sales ratio at 1.96 compared to the industry median at 1.43, this company has a higher price relative to revenue compared to its peers. This could make ATA Creativity Global(ADR)’s stock less attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. ATA Creativity Global(ADR)’s shareholder yield is higher than its industry median ratio of (0.06%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. ATA Creativity Global(ADR)’s price-to-book ratio is higher than its industry median ratio of 0.80. This could make ATA Creativity Global(ADR) less attractive to investors looking for a new addition to their portfolio.

American Public Education, Inc.’s Value Grade

Value Grade:

American Public Education, Inc., through its institutions, American Public University System (APUS), Rasmussen University (RU), Hondros College of Nursing (HCN), and Graduate School USA (GSUSA), provides online and campus-based postsecondary education and career learning. Its segments include APUS, RU and HCN. APUS segment provides online postsecondary education directed primarily at the needs of the military, military-affiliated, public service and service-minded communities through American Military University (AMU), and American Public University (APU). APUS serves about 88,900 adult learners worldwide via accessible and affordable higher education. RU segment provides nursing and health sciences-focused postsecondary education to over 14,300 students at its 22 campuses in six states and online. HCN segment offers pre-licensure nursing programs that are designed to prepare individuals for productive careers at its eight campuses (six in Ohio, one in Indiana, and one in Michigan).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

American Public Education, Inc. has a Value Score of 89, which is considered to be undervalued.

American Public Education, Inc.’s price-to-book ratio is higher than its peers. This could make American Public Education, Inc. less attractive for value investors when compared to the industry median at 0.80.

You can read more about American Public Education, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Meten Holding Group Ltd’s Value Grade

Value Grade:

Meten Holding Group Ltd, formerly Meten Edtechx Education Group Ltd, is an English Language Teaching (ELT) provider in China. The Company is involved in providing the training of English language and related skills for Chinese students and professionals through a digital platform and network of learning centers. The Company provides adult and junior ELT services under the Meten brand name, junior ELT services under the ABC brand name and online ELT services under the Likeshuo brand name. The Company uses artificial intelligence (AI) -driven centralized teaching and management systems to support teaching quality and student satisfaction.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Meten Holding Group Ltd has a Value Score of 91, which is considered to be undervalued.

Meten Holding Group Ltd’s price-earnings ratio is 3.4 compared to the industry median at 18.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Meten Holding Group Ltd more attractive for value investors.

Meten Holding Group Ltd’s price-to-book ratio is higher than its peers. This could make Meten Holding Group Ltd less attractive for value investors when compared to the industry median at 0.80.

You can read more about Meten Holding Group Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Miscellaneous Educational Service Providers Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Miscellaneous Educational Service Providers stocks as well as other industrys.

Choosing Which of the 3 Best Miscellaneous Educational Service Providers Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• ATA Creativity Global(ADR) stock has a Value Grade of B.
• American Public Education, Inc. stock has a Value Grade of A.
• Meten Holding Group Ltd stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Miscellaneous Educational Service Providers industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Miscellaneous Educational Service Providers Stocks

Want to learn more about Miscellaneous Educational Service Providers stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Miscellaneous Educational Service Providers Stocks for Tuesday, April 18
• 3 Undervalued Miscellaneous Educational Service Providers Stocks for Thursday, April 13
• 3 Undervalued Miscellaneous Educational Service Providers Stocks for Monday, April 10
• 3 Undervalued Miscellaneous Educational Service Providers Stocks for Friday, April 07

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.