LRN (Stride) Intrinsic Value: DCF (Earnings Based): $263.75 (As of Aug. 23, 2026) — 45374% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LRN Stride Inc LRN
85 GF Score
Price $84.36
GF Value $89.47
Valuation Fairly Valued
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What is Stride Intrinsic Value: DCF (Earnings Based)?

Stride LRN +0.34% 85 Intrinsic Value: DCF (Earnings Based) is $263.75 as of Aug. 23, 2026, which is 45374% above its 10-year median of 0.58. GuruFocus rates LRN with a GF Score™ of 85/100 and a GF Value™ of $89.47 (Fairly Valued). Among 23 Education companies, Stride ranks better than 78.26% on this metric.

As of today (2026-08-23), Stride's intrinsic value calculated from the Discounted Earnings model is $263.75.

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Stride's Predictability Rank is 5-Stars.

Margin of Safety (Earnings Based) using Discounted Earnings model for Stride is 68.02%.

The historical rank and industry rank for Stride's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:

LRN' s Price-to-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.32   Med: 0.58   Max: 0.83
Current: 0.32

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Earnings Based) Ratio of Stride was 0.83. The lowest was 0.32. And the median was 0.58.

LRN's Price-to-DCF (Earnings Based) is ranked better than
78.26% of 23 companies
in the Education industry
Industry Median: 0.58 vs LRN: 0.32

Stride  (NYSE:LRN) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Stride Intrinsic Value: DCF (Earnings Based) Related Terms


Stride Intrinsic Value: DCF (Earnings Based) Historical Data

* Premium members only.

The historical data trend for Stride's Intrinsic Value: DCF (Earnings Based) 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.

Stride Intrinsic Value: DCF (Earnings Based) Chart

Stride Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Intrinsic Value: DCF (Earnings Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 263.75

Stride Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Intrinsic Value: DCF (Earnings Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 263.75

LRN vs LOPE, CVSA, LAUR: Intrinsic Value: DCF (Earnings Based) Comparison

For the Education & Training Services subindustry, Stride's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) 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.


Stride Price-to-DCF (Earnings Based) vs Education Industry

For the Education industry and Consumer Defensive sector, Stride's Price-to-DCF (Earnings Based) distribution charts can be found below:

* The bar in red indicates where Stride's Price-to-DCF (Earnings Based) falls into.


LRN
85GF Score
Stride Inc LRN
Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Stride Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.74%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Stride's average EPS without NRI Growth Rate in the past 10 years was 47.50%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = $8.440.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Stride's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.11) = 1.0810810810811
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=EPS without NRI*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=8.440*31.2501
=263.75

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(263.75-84.36)/263.75
=68.02 %

* 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.

What does a Intrinsic Value: DCF (Earnings Based) of $263.75 mean?
Stride (LRN) has a Intrinsic Value: DCF (Earnings Based) of $263.75 as of Aug. 23, 2026. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Stride and its competitors. This is 45374% above median its historical median of 0.58. Over the past decade, Stride's Intrinsic Value: DCF (Earnings Based) has ranged from 0.32 to 0.83. According to the industry distribution chart, Stride ranks #5 out of 23 companies in the Education industry, placing it in the top 21.7%.
Is Stride's Intrinsic Value: DCF (Earnings Based) too high?
Stride's current Intrinsic Value: DCF (Earnings Based) of $263.75 is 45374% above median its 10-year median of 0.58. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 0.83. The Education industry median Intrinsic Value: DCF (Earnings Based) is 0.58. Stride's value of $263.75 is 45374.1% above this industry median. Based on the distribution chart, Stride ranks #5 out of 23 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Stride has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Stride's Intrinsic Value: DCF (Earnings Based) compare to LOPE and CVSA?
According to the Education industry distribution chart, Stride ranks #5 out of 23 companies for Intrinsic Value: DCF (Earnings Based). This places Stride in the top 22% of its industry — outperforming the majority of peers. The industry median Intrinsic Value: DCF (Earnings Based) is 0.58. Stride's value of $263.75 is 45374.1% above this benchmark. Historically, Stride's own Intrinsic Value: DCF (Earnings Based) has ranged from 0.32 to 0.83 over the past decade. While the company's 10-year median is 0.58 vs. the industry median of 0.58, Stride 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 Intrinsic Value: DCF (Earnings Based) for an Education company?
The median Intrinsic Value: DCF (Earnings Based) among Education companies is 0.58, based on 23 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Earnings Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stride's current Intrinsic Value: DCF (Earnings Based) of $263.75 is 45374.1% 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 Intrinsic Value: DCF (Earnings Based) mean?
A high Intrinsic Value: DCF (Earnings Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Stride and its competitors. For the Education industry, the median Intrinsic Value: DCF (Earnings Based) is 0.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stride's current Intrinsic Value: DCF (Earnings Based) is $263.75, which is 45374% above median its own 10-year median of 0.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stride stock overvalued right now?
Based on GuruFocus' analysis, Stride (LRN) is currently considered Fairly Valued. The stock's GF Value™ is $89.47, compared to a current price of $84.36 — trading 5.7% below its estimated fair value. The current Intrinsic Value: DCF (Earnings Based) is $263.75, which is 45374% above median its 10-year median of 0.58 and 45374.1% above the Education industry median of 0.58. Stride's overall GF Score™ is 85/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Earnings Based) calculated?
Intrinsic Value: DCF (Earnings Based) is calculated from a company's financial statements. For Stride (LRN), the current Intrinsic Value: DCF (Earnings Based) is $263.75 as of Aug. 23, 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 Stride (LRN) Overvalued in 2026?

Based on GuruFocus' analysis, Stride stock appears to be undervalued. The current stock price of $84.36 is trading 5.7% below its estimated GF Value™ of $89.47. GuruFocus considers Stride to be Fairly Valued.

Key valuation signals for LRN:

  • Intrinsic Value: DCF (Earnings Based): $263.75 (45374% above median its 10-year median of 0.58)
  • GF Value™: $89.47 vs. price of $84.36 (5.7% below fair value)
  • GF Score™: 85/100
  • Industry Position: 45374.1% above the Education median (#5 of 23)

No single metric tells the full story. See the LRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Stride Business Description

Address 11720 Plaza America, 9th Floor, Reston, VA, USA, 20190
Stride Inc is an American online educational company. It offers alternative programs to traditional on-campus schooling. It also operates state-funded virtual charter schools around the United States. The educational programs for K-12 students are usually monitored by parents and provide virtual classroom environments where teachers meet with students online, by phone, or in-person. The company's contractual agreements with various school districts to offer its curriculum programs provide a majority of the company's revenue. The company lines of business are Managed Public School Programs, Institutional and Private Pay Schools and Other.
85GF Score

Get the complete analysis for LRN

Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$84.36
Price
$89.47
GF Value