Sector

PUBLIC VALUATIONS: GLOBAL EDUCATION, WORKFORCE, AND MONEY

We track a defined set of public valuations for education, workforce and related fintech companies. In keeping with a global theme, our focus is on businesses operating within or across major Emerging and Frontier Markets and excluding predominantly domestic-oriented businesses.

You can read our latest valuation and commentaries here:


INDEX PORTFOLIO

Sector Composition

  • Education and Learning: includes pre-K to lifelong learning in all modalities from physical school chains to online learning tools.
  • Workforce: is broadly defined to include productivity tools, job search and match, and HR tech platforms such as job sites
  • Fintech: this includes all specialized payments and solutions platforms that facilitate work, employment and business formation.

Weighting

The index portfolio includes a broad cross-section of companies as part of a broad and socially impactful sector allocation. We track pricing through equities and equity-linked instruments. There is currently no allocation for education or workforce relevant cypto-currencies.

In terms of weighting, the global market penetration and scale within the Workforce and related Fintech sectors are significantly (> 4x) larger than the Education sector, despite the higher number of constituent companies in Education. This is because most Education companies have traditionally focused on capturing local market share and have developed a far smaller footprint across global markets due to scaling and regulatory issues.

Our aim is to provide a representative set of constituents that operate globally and, in this sense, we are not concerned with particular weightings or re-balancing over time.

Constituents

Workforce and Money

CompanyCountryRegionSector
SEEK LimitedAustraliaAsiaJob Search
51JobChinaAsiaJob Search
RecruitJapanAsiaJob Search
AtlassianAustraliaAsiaProductivity
Rare JobJapanAsiaL&D
RandstadNetherlandsEuropeWorkforce
UpworkUSAAmericasWorkforce
Slack USAAmericasProductivity
ShopifyUSAAmericasProductivity
ZoomChinaAsiaProductivity
InfosysIndiaAsiaProductivity
MindtreeIndiaAsiaProductivity
AdeccoSwitzerlandEuropeProductivity
Cornerstone on DemandUSAAmericasProductivity
WorkdayUSAAmericasProductivity
CrowdstrikeUSAAmericasProductivity
QuhuoChinaAsiaProductivity
TwilioUSAAmericasProductivity
Workforce HoldingsSouth AfricaAmericasWorkforce
AdyenNetherlandsEuropePayments
FiservUSAAmericasPayments
SquareUSAAmericasPayments
StoneCoBrazilAmericasPayments
Fivvr IntlIsraelMENAWorkforce
UiPathUSAAmericasWorkforce

Education

CompanyCountryRegionSector
Bright ScholarChinaAsiaPre-K/K12
China Education GroupChinaAsiaHigher Ed/Vocat
China Yuhua EducationChinaAsiaHigher Ed/Vocat
Koolearn TechnologyChinaAsiaAST  
Maple Leaf Ed SystemsChinaAsiaPre-K/K12
LAIXChinaAsiaELL
Offcn Education TechnologyChinaAsiaHigher Ed/Vocat
TAL Education GroupChinaAsiaAST  
China Xinhua EducationChinaAsiaHigher Ed/Vocat
OneSmart EducationChinaAsiaPre-K/K12
China New Higher Ed GroupChinaAsiaHigher Ed/Vocat
China Online Ed Group (51 Talk)ChinaAsiaELL
Hailiang EducationChinaAsiaPre-K/K12
China East EducationChinaAsiaHigher Ed/Vocat
New OrientalChinaAsiaAST  
MinshengChinaAsiaHigher Ed/Vocat
PuxinChinaAsiaPre-K/K12
QtoneChinaAsiaSoftware/LMS
GSX Tech EduChinaAsiaAST  
Wisdom EducationChinaAsiaPre-K/K12
RISEChinaAsiaPre-K/K12
Afya LtdBrazilAmericasHigher Ed/Vocat
Anima Holding SABrazilAmericasHigher Ed/Vocat
Arco PlatformBrazilAmericasSoftware/LMS
Cogna EduacaoBrazilAmericasHigher Ed/Vocat
SER EducationalBrazilAmericasHigher Ed/Vocat
Vasta PlatformBrazilAmericasSoftware/LMS
IDP AustraliaAsiaELL
G8 AustraliaAsiaPre-K/K12
3P LearningAustraliaAsiaSoftware/LMS
Redhill EducationAustraliaAsiaHigher Ed/Vocat
Virscend EducationHong KongAsiaPre-K/K12
Chungdahm LearningSingaporeAsiaPre-K/K12
RafflesSingaporeAsiaHigher Ed/Vocat
Benesse/BerlitzJapanAsiaELL
Overseas Education SingaporeAsiaPre-K/K12
Visang EducationKoreaAsiaSoftware/LMS
DaekyoKoreaAsiaPre-K/K12
EduCompIndiaAsiaSoftware/LMS
MT EducareIndiaAsiaSoftware/LMS
AptechIndiaAsiaHigher Ed/Vocat
Curro HoldingsSouth AfricaAfricaPre-K/K12
AdvtechSouth AfricaAfricaHigher Ed/Vocat
PearsonUKEuropePre-K/K12
K12USAmericasPre-K/K12
2UUSAmericasHigher Ed/Vocat
CourseraUSAmericasHigher Ed/Vocat

Valuation Metrics

On a technical level, we calculate EV/EBITDA multiples on a past (TTM) basis which provides a useful snapshot of valuation based on forward and price expectations which we then compare with relative market capitalization.

Figures 1 and 2 provide real-time data updates (monthly).

Figure 1: Global Workforce and Related Fintech

Figure 2: Global Education

M&A ACTIVITY: CROSS-BORDER TRANSACTIONS

Through the Covid period, cross-border M&A activity is accelerating across workforce and education segments, from education and training to career navigation, job search, workforce alignment, AI matching and productivity.

Our database has tracked over 20 notable cross-border acquisitions tracked between December 2019 and October 2020, with an additional 5 through May 2021.  Key investors continue to be based from the US, Australia, China, and parts of Europe. Acquisition targets are predominantly in Asia (Figure 5).

Yet in terms of addressable market value this activity is still a drop in the ocean. Figures 3 and 4 map out the latest data by region and company.

Figure 3. Cross-Border Acquisition Leaders


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