TAL Education Group Valuation

Is T1AL34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of T1AL34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: T1AL34 (R$5.65) is trading below our estimate of fair value (R$7)

Significantly Below Fair Value: T1AL34 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for T1AL34?

Key metric: As T1AL34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for T1AL34. This is calculated by dividing T1AL34's market cap by their current earnings.
What is T1AL34's PE Ratio?
PE Ratio	81.4x
Earnings	US$72.40m
Market Cap	US$5.94b

T1AL34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	245.6x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does T1AL34's PE Ratio compare to its peers?

The above table shows the PE ratio for T1AL34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17x
YDUQ3 Yduqs Participações	14.1x	36.8%	R$2.9b
CSED3 Cruzeiro do Sul Educacional	8.1x	27.4%	R$1.3b
SEER3 Ser Educacional	25.2x	41.2%	R$876.2m
VTRU3 Vitru Brasil Empreendimentos Participações e Comércio	20.7x	42.1%	R$1.1b
T1AL34 TAL Education Group	81.4x	36.1%	R$5.9b

Price-To-Earnings vs Peers: T1AL34 is expensive based on its Price-To-Earnings Ratio (81.4x) compared to the peer average (17x).

Price to Earnings Ratio vs Industry

How does T1AL34's PE Ratio compare vs other companies in the Global Consumer Services Industry?

27 Companies	Price / Earnings	Estimated Growth	Market Cap

27 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: T1AL34 is expensive based on its Price-To-Earnings Ratio (81.4x) compared to the Global Consumer Services industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is T1AL34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

T1AL34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	81.4x
Fair PE Ratio	43x

Price-To-Earnings vs Fair Ratio: T1AL34 is expensive based on its Price-To-Earnings Ratio (81.4x) compared to the estimated Fair Price-To-Earnings Ratio (43x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.