Perdoceo EducationPRDO +1.06%75 Gross Margin % is 78.77% as of Mar. 2026, which is 4% below its 10-year median of 81.95. GuruFocus rates PRDO with a GF Score™ of 75/100 and a GF Value™ of $31.46 (Fairly Valued). The stock has 3 warning signs investors should review. Among 245 Education companies, Perdoceo Education ranks better than 91.02% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Perdoceo Education had a gross margin of 78.77% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Perdoceo Education Gross Margin % Related Terms
Perdoceo Education Gross Margin % Historical Data
* Premium members only.
The historical data trend for Perdoceo Education's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Education & Training Services subindustry, Perdoceo Education's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Perdoceo Education Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Perdoceo Education's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Perdoceo Education's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Perdoceo Education (PRDO) has a Gross Margin % of 78.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Perdoceo Education and its competitors. This is near median its historical median of 81.95. Over the past decade, Perdoceo Education's Gross Margin % has ranged from 66.62 to 84.31. According to the industry distribution chart, Perdoceo Education ranks #22 out of 245 companies in the Education industry, placing it in the top 9%.
Is Perdoceo Education's Gross Margin % too high?
Perdoceo Education's current Gross Margin % of 78.77% is near median its 10-year median of 81.95. Over the past 10 years, this metric has ranged from a low of 66.62 to a high of 84.31. The Education industry median Gross Margin % is 47.86. Perdoceo Education's value of 78.77% is 64.6% above this industry median. Based on the distribution chart, Perdoceo Education ranks #22 out of 245 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Perdoceo Education has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Perdoceo Education's Gross Margin % compare to UTI and MH?
According to the Education industry distribution chart, Perdoceo Education ranks #22 out of 245 companies for Gross Margin %. This places Perdoceo Education in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 47.86. Perdoceo Education's value of 78.77% is 64.6% above this benchmark. Historically, Perdoceo Education's own Gross Margin % has ranged from 66.62 to 84.31 over the past decade. While the company's 10-year median is 81.95 vs. the industry median of 47.86, Perdoceo Education has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 47.86, based on 245 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perdoceo Education's current Gross Margin % of 78.77% is 64.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Perdoceo Education and its competitors. For the Education industry, the median Gross Margin % is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perdoceo Education's current Gross Margin % is 78.77%, which is near median its own 10-year median of 81.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perdoceo Education stock overvalued right now?
Based on GuruFocus' analysis, Perdoceo Education (PRDO) is currently considered Fairly Valued. The stock's GF Value™ is $31.46, compared to a current price of $33.34 — trading 6% above its estimated fair value. The current Gross Margin % is 78.77%, which is near median its 10-year median of 81.95 and 64.6% above the Education industry median of 47.86. Perdoceo Education's overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Perdoceo Education (PRDO), the current Gross Margin % is 78.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Perdoceo Education (PRDO) Overvalued in 2026?
Based on GuruFocus' analysis, Perdoceo Education stock appears to be overvalued.
The current stock price of $33.34 is trading 6% above its estimated GF Value™ of $31.46.
GuruFocus considers Perdoceo Education to be Fairly Valued.
Key valuation signals for PRDO:
Gross Margin %: 78.77% (near median its 10-year median of 81.95)
GF Value™: $31.46 vs. price of $33.34 (6% above fair value)
Industry Position: 64.6% above the Education median (#22 of 245)
No single metric tells the full story. See the PRDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segments include the American InterContinental University, the University of St. Augustine for Health Sciences, and Colorado Technical University. These universities provide undergraduate, graduate, and doctoral degree programs focusing on business, technology, management, and social services, with the majority of the students enrolled in programs offered fully online. The majority of the its revenue comes from the Colorado Technical University segment.
75GF Score
Get the complete analysis for PRDO
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PRDO has been successfully added to your 
