Overview
Puxin Limited’s (NEW) share price is currently -32% on a year-on-year basis and is currently trading at $7.78 per ADS. We believe that the company is undervalued due to its improving business performance and sensible acquisition strategy amidst a fragmented market. Additionally, Puxin Limited’s performance will be supported by the increasing demand for quality education in China. Our valuation model suggests that the company should be trading between $17.3 per ADS to $23.6 per ADS.
Investment Thesis
Given the current expanding education market, we believe that Puxin Limited is