02. Vasta Platform Limited (NASDAQ:VSTA)
Forward P/E ratio: 9.25
Vasta Platform Limited (NASDAQ:VSTA) is quietly making waves in Brazil’s private education market, and at under $20, it looks like a steal. As of June 13, Vasta trades with a forward P/E ratio of just 9.25, a PEG ratio of 0.10, and a debt to equity ratio of 0.18, a combination that signals both strong value and manageable risk. These metrics alone make Vasta a standout among undervalued growth stocks.
Vasta Platform Limited (NASDAQ:VSTA) offers a mix of printed and digital learning solutions to private schools across Brazil. It isn’t just selling textbooks; it’s building a digital first education ecosystem through its proprietary platform, Plural. Now, with Plural AI launching in 2026 to support individualized learning and inclusive education, the company is positioning itself at the intersection of technology and impact.
While Vasta Platform Limited (NASDAQ:VSTA) did slightly miss Q1 earnings expectations (reporting $0.05 EPS vs. the $0.06 consensus), the broader numbers paint a bullish picture. Net revenue for the current sales cycle is up 11% year over year, reaching BRL 1.13 billion. More importantly, subscription revenue, which makes up 90% of total revenue, grew 17%, reinforcing the company's shift toward more stable, recurring income.
Operationally, Vasta Platform Limited (NASDAQ:VSTA) is getting leaner and stronger. Adjusted EBITDA rose 5% to BRL 420 million with a solid 37.2% margin, while free cash flow surged 176% year over year, a clear sign of improving efficiency. The company’s free cash flow to EBITDA conversion also improved to 50.8%, up from 42.5% last year, thanks to enhanced billing practices and tighter cost controls.
Although certain segments like government contracts and non subscription products declined, these make up a small portion of revenue and don’t significantly affect the core growth story. Add to that disciplined G&A spending, falling provisions for doubtful accounts, and a manageable net debt position, and you’ve got a fundamentally sound company with long term upside.
In short, Vasta Platform Limited (NASDAQ:VSTA) may be flying under the radar, but it’s building real value. Its fundamentals suggest it won’t stay undervalued for long.