3P Learning
How to value a recently listed subscription software company with a DCF, then stress-test it with bull and bear scenarios.
- Rating
- Price target
- AUD 2.70
- Published
- January 14, 2015
- Length
- 44 pages
- Sector
- Education technology
- Market
- Australia
What the analyst argued
3P Learning sells cloud-based K-12 education software (Mathletics, Reading Eggs, IntoScience) to more than 4.7 million subscribers, mainly in Australia and the UK. Deutsche Bank initiated with a Buy because the model was highly scalable and cash generative, the sector was migrating structurally online, and a forecast 22% three-year EPS CAGR justified a 28.7x FY15 P/E. The $2.70 target was set equal to a DCF (beta 1.2, WACC 10.8%, terminal growth 3.5%), with a bull case implying roughly 70% upside and competition, technology and currency flagged as the main risks.
Lead analysts: Stuart McLachlan, Dominic Rose, Wassim Kisirwani.
Inside the report
- 01Investment Thesis
- 02Business Overview
- 03Growth Strategy
- 04Returns Profile
- 05Industry Outlook
- 06Financials
- 07Valuation
- 08Scenario Analysis (Bull/Bear Case)
- 09Peer Comparison Analysis
- 10Risks
- DCF
- P/E
- EV/EBITDA
- Comparable companies
- Precedent transactions
Includes a multi-year earnings model with the income statement, balance sheet, and cash flow forecasts the valuation is built on.
Read the report
44 pages
Tap the cover to open the PDF.Published by Deutsche Bank on January 14, 2015 and hosted here for educational use; the report and everything in it belongs to Deutsche Bank. The rating, estimates, and price target are the analysts’ view on that date, more than a decade ago, and are not a recommendation today. Copy first uploaded October 5, 2026.
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