Although the IDP Education Ltd (ASX: IEL) share price ended the day only marginally higher, at one stage on Monday the student placement services and language testing company's shares rose 4% to a new all-time high of $15.40.
When its shares hit that level, they were up an incredible 56% since the start of the year.
Why are IDP Education's shares at an all-time high?
Investors have been fighting to get hold of IDP Education's shares since the release of its half year results last month.
In the first half of FY 2019 IDP Education posted an impressive 26% increase in total revenue to $304.3 million and a sizeable 34% jump in net profit after tax to $40.7 million.
The key drivers of the company's growth during the half were its English Language Testing and Student Placement segments.
English Language Testing revenue increased 19% to $178.6 million, driven by an 18% increase in volumes and a 2% lift in the average test fee to $271.
Supporting the growth was its Student Placement segment which grew revenue by 36% on the prior corresponding period to $90.7 million. This strong half was the result of a 23% lift in volumes and a 14% increase in the average application processing fee (APF) to $3,341.
Asia was once again the company's biggest source of revenue. Revenue from the region increased 33% on the prior corresponding period to $204.4 million, offsetting weakness in the Australasian market which saw revenue fall 11% to $31 million.
Another side of the business which appears to have got the market excited is its Digital business. Although it is early days, the business is showing a lot of potential and there are now 24 markets live on its new global platform.
Is it too late to invest?
I'm a big fan of IDP Education and believe it has a very bright future ahead of it. However, with its shares now changing hands at around 55x estimated full year earnings, I feel they are fully valued.
In light of this, I would suggest investors hold out for a better entry point and focus on opportunities elsewhere. Other top growth shares to consider include Aristocrat Leisure Limited (ASX: ALL) and Bravura Solutions Ltd (ASX: BVS).
