New Oriental Education & Technology Group Inc.

DB:N1UA Stock Report

Market Cap: €8.6b

New Oriental Education & Technology Group Valuation

Is N1UA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 N1UA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€217.80
Fair Value
76.1% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: N1UA (€52) is trading below our estimate of fair value (€217.8)

Significantly Below Fair Value: N1UA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for N1UA?

Key metric: As N1UA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for N1UA. This is calculated by dividing N1UA's market cap by their current earnings.
What is N1UA's PE Ratio?
PE Ratio23.2x
EarningsUS$391.50m
Market CapUS$9.07b

Price to Earnings Ratio vs Peers

How does N1UA's PE Ratio compare to its peers?

The above table shows the PE ratio for N1UA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27x
TUI1 TUI
6.7x16.0%€3.6b
BFAM Bright Horizons Family Solutions
53.5x28.4%US$7.5b
PSON Pearson
25.6x11.3%UK£8.9b
LRN Stride
22.2x14.0%US$6.0b
N1UA New Oriental Education & Technology Group
23.2x19.7%€9.1b

Price-To-Earnings vs Peers: N1UA is good value based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (27x).

Price to Earnings Ratio vs Industry

How does N1UA's PE Ratio compare vs other companies in the European Consumer Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
N1UA 23.2xIndustry Avg. 18.2xNo. of Companies6PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: N1UA is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the Global Consumer Services industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is N1UA'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.

N1UA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.2x
Fair PE Ratio33.6x

Price-To-Earnings vs Fair Ratio: N1UA is good value based on its Price-To-Earnings Ratio (23.2x) compared to the estimated Fair Price-To-Earnings Ratio (33.6x).

Analyst Price Targets

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

The above table shows the analyst N1UA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€52.00
€64.66
+24.3%
23.3%€105.11€42.24n/a23
Feb ’26€46.40
€64.66
+39.4%
23.3%€105.11€42.24n/a23
Jan ’26€59.50
€82.66
+38.9%
11.3%€105.66€59.82n/a23
Dec ’25€54.50
€81.43
+49.4%
12.0%€103.39€58.54n/a23
Nov ’25€57.00
€80.11
+40.5%
11.8%€101.13€57.26n/a24
Oct ’25€69.50
€81.47
+17.2%
12.5%€98.02€55.53n/a23
Sep ’25€55.50
€83.85
+51.1%
11.7%€98.37€55.73n/a24
Aug ’25€57.00
€86.61
+52.0%
11.7%€101.43€57.46n/a24
Jul ’25€73.00
€93.92
+28.7%
13.2%€118.67€57.93n/a24
Jun ’25€73.50
€92.75
+26.2%
13.3%€117.07€57.15n/a24
May ’25€72.50
€93.26
+28.6%
13.7%€118.45€57.83n/a22
Apr ’25€79.00
€91.89
+16.3%
16.9%€113.58€47.48n/a22
Mar ’25€88.50
€87.22
-1.5%
16.9%€112.87€47.19n/a22
Feb ’25€72.00
€85.40
+18.6%
16.1%€104.88€46.92€46.4021
Jan ’25€63.00
€73.13
+16.1%
16.1%€90.85€42.46€59.5021
Dec ’24€75.00
€71.15
-5.1%
15.4%€89.32€42.84€54.5020
Nov ’24€61.50
€72.14
+17.3%
16.1%€92.60€44.41€57.0018
Oct ’24€55.00
€61.16
+11.2%
15.5%€80.48€34.08€69.5018
Sep ’24€53.50
€57.30
+7.1%
18.3%€78.57€33.28€55.5018
Aug ’24€51.00
€55.33
+8.5%
19.3%€77.10€32.66€57.0016
Jul ’24€36.00
€47.69
+32.5%
23.4%€64.13€21.99€73.0016
Jun ’24€38.20
€47.62
+24.7%
23.9%€65.00€22.29€73.5015
May ’24€40.60
€45.80
+12.8%
23.9%€63.86€21.90€72.5014
Apr ’24€35.00
€44.61
+27.4%
23.0%€60.95€22.50€79.0013
Mar ’24€38.20
€44.21
+15.7%
22.9%€60.21€22.23€88.5013
Feb ’24€40.80
€42.61
+4.4%
22.7%€60.00€22.15€72.0013
Analyst Price Target
Consensus Narrative from 23 Analysts
€63.13
Fair Value
17.6% undervalued intrinsic discount
23
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/16 03:04
End of Day Share Price 2025/02/14 00:00
Earnings2024/11/30
Annual Earnings2024/05/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

New Oriental Education & Technology Group Inc. is covered by 59 analysts. 30 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Hong Xing PanABCI Securities Company Limited
Amy JunkerBaird
Yanfang JiangBenchmark Company