Undervaluation in apollo group (apol)

Apollo group is a company that provides online education. Its business models have been very successful and it is even the owner of the University of Phoenix and a host of other universities. Through, these platforms, apollo hopes to deliver top notch education through the internet.

Having been beaten down after disaapointing the analysts, it has dropped from a high of about $95 to approximately $48 right now. Furthermore, it is trading at a PE ratio of 20.11.

Being a growth company, some reknowned investors think that is is undervalued. Some of the investors that think it is undervalued include Ron Baron, Charles De Valux, David Dreman, Wallace Weitz & Ruane Cunniff.

A quick and dirty way of valuing the company is by looking at companies within similar industries and a company similar to Apollo is Strayer education. Strayer is also an online university on its own and trades at a PE ratio of 34.6.

Comparing a PE ratio of 20.11 of apollo to Strayer's 34.6, apollo group seems to me an undevalued entity that is worth a closer look.