Grand Canyon Education, Inc.

LOPEdata completeness 88%17 fiscal years on file
The thesis, from the filings

Grand Canyon Education, Inc. earns about 43% on invested capital, far above its ~9% cost of capital, and has bought back 36% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $79.94 and $125.66 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$896.6M1$911.3M2$960.9M3$1.03B3$1.11B3
Net income$260.3M4$184.7M5$205M6$226.2M6$216.2M6
Operating cash flow$313.1M7$220.8M8$243.7M9$290M9$273.5M9
Capital expenditure$28.9M10$35.2M11$44.5M12$37.2M12$34.8M12
Free cash flow (derived)$284.2M7$185.6M8$199.1M9$252.7M9$238.6M9
Total debt
Cash & equivalents$600.9M13$120.4M14$146.5M15$324.6M16$111.8M16
Diluted shares44.0M32.2M30.1M29.3M28.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$266.53
your share of equity
Profit it earned you last year
$77.14
Free cash flow it threw off
$85.16
Debt you’d be carrying

10 shares is a claim on $266.53 of net worth that earned you $77.14 and generated $85.16 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
43% avg · 5y
FY21 59%FY22 36%FY23 36%FY24 49%FY25 34%

It earned about 43% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−36% shares · 5y

Share count is down 36% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $79.94 and $125.66 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$116.5
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$238.6M
DCF · Growth Exit 5Y
$125.66
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$238.6M
Earnings Power Value
$79.94
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$216.2M
  • growthAssumed0.0%
Graham Number
$68
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $125.66
The three cases
Bear0.0%$125.66
Base0.0%$125.66
Bull5.0%$155.11

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-001060 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-25-001150 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-017047 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-001060 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001558370-25-001150 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-017047 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-001060 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-25-001150 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001104659-26-017047 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-24-001060 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-25-001150 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-12-31 · accession 0001104659-26-017047 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2021-12-31 · accession 0001558370-23-001452 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001558370-24-001060 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001558370-25-001150 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-017047 (CashAndCashEquivalentsAtCarryingValue)