Future Language Schools is currently the largest collection of private schools in Egypt. FLS currently owns 14 schools, four of which are listed under CAED. Established in 1997, Cairo Educational Services is the only player listed on the EGX that provides exposure to schools around Cairo. The company specializes in the development, leasing and management of the schools. The parent company intends to list end of 2018 or early 2019, which will increase the visibility of CAED, which represents only four schools out of the total portfolio. CAED is trading at 2018 P/E of 6.5x and EV/EBITDA of 4.1x, which is much cheaper than emerging market peers. However, the stock is highly illiquid, which warrants a discount. We assign CAED a FV of EGP12.05 and Overweight recommendation. The stock is a high dividend play with a 9% dividend yield.