ITT Educational Services, Inc. (NYSE:ESI)
CAPS Rating:
The Company is a for-profit provider of postsecondary education in the United States. It offers diploma and associate, bachelor and master degree programs at a number of institutes.
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Based upon historical earnings growth, I think this stock should be valued near $259.25 using discounted cash flows over the next 5 years. This produces a safety margin of 77%. The biggest downside that I see is that it is widely shorted, which may drive the price down in the near term.