New Oriental Education (NYSE:EDU): A Fresh Look at Valuation Following Major Institutional Stake Increase

On September 30, 2025, First Beijing Investment Ltd raised its position in New Oriental Education & Technology Group (NYSE:EDU) by more than 7 million shares, increasing its stake by 4%. This change signals renewed institutional interest.

See our latest analysis for New Oriental Education & Technology Group.

New Oriental Education & Technology Group’s recent momentum shift comes after a challenging stretch. While the 1-day share price return was a modest 0.92%, the stock is still down 14.15% over the past month and 16.10% for the year to date. Over a longer period, its 3-year total shareholder return stands out at an impressive 111%, demonstrating how volatility can hide underlying value even when the 1-year total shareholder return remains negative. With institutional investors increasing their stakes, sentiment around future growth appears to be warming once again.

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With shares still off their yearly highs and trading nearly 25% below the average analyst price target, investors must ask themselves if New Oriental remains undervalued or if the market is already pricing in a growth rebound.

Most Popular Narrative: 19.9% Undervalued

The widely followed narrative places New Oriental Education & Technology Group’s fair value at $64.49, which is meaningfully higher than the recent closing price. This sets the stage for a debate about whether future growth is about to drive share price upside.

“Strong momentum and high year-over-year growth in new non-academic tutoring and AI-powered learning products reflects growing consumer demand for enrichment and personalized education. This positions the company to benefit from continued societal prioritization of premium educational services, which should support long-term revenue growth and improve blended margins due to scale and higher retention.”

Read the complete narrative.

Curious what performance benchmarks could unlock that price upgrade? This narrative is built on game-changing growth catalysts and bold projections for margins and future earnings power. See the essential assumptions backing the analysts’ confidence, and decide if the blueprint matches your outlook.

Result: Fair Value of $64.49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in international revenues and growing competition in core segments could put pressure on New Oriental's earnings outlook going forward.

Find out about the key risks to this New Oriental Education & Technology Group narrative.

Build Your Own New Oriental Education & Technology Group Narrative

If you see things differently or want to shape your own perspective using the latest figures, it takes less than three minutes to craft a narrative that fits your analysis. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding New Oriental Education & Technology Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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