TABLE OF CONTENTS
Sector Thesis & Key Trends……………………………………………………………………….. 3
Market & Operating Assumption………………………………………………………………….. 5
Sector Risks ………………………………………………………………………………………….. 6
Valuation Review ……………………………………………………..…………………………….. 7
Industry Review…………………………………………………………………………………….. 15
Financial Review…………………………….………………………………………………………. 22
Countercyclicality…………………………………………………………………………………… 25
Tuition Review……………………………………………………………………………………….. 26
Student Loan Review……………………………………………………………………………… 28
Regulatory Environment………………………………………………………………………… 32
Framework for Analyzing Education Companies Financial Results …………………… 35
Apollo Group………………………………………………………………………………………… 37
DeVry Inc……………………………………………………………………………………………… 52
Grand Canyon Education…………………………………………………………………………… 64
Strayer Education…………………………………………………………………………………… 76
American Public Education……………………………………………………………………… 93
Capella Education…………………………………………………………………………………… 98