New Oriental Education & Technology Group Inc.

NYSE:EDU Stock Report

Market Cap: US$10.0b

New Oriental Education & Technology Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: EDU ($61.27) is trading below our estimate of fair value ($270.58)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EDU. This is calculated by dividing EDU's market cap by their current earnings.
What is EDU's PE Ratio?
PE Ratio25.7x
EarningsUS$389.64m
Market CapUS$10.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EDU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.7x
BFAM Bright Horizons Family Solutions
54x32.4%US$6.2b
LOPE Grand Canyon Education
20.5x6.4%US$4.7b
LRN Stride
18.8x14.6%US$4.5b
DUOL Duolingo
173.4x34.6%US$14.7b
EDU New Oriental Education & Technology Group
25.7x21.0%US$10.0b

Price-To-Earnings vs Peers: EDU is good value based on its Price-To-Earnings Ratio (25.7x) compared to the peer average (66.7x).

Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QSG QuantaSing Group
1.8x-25.6%US$99.16m
STG Sunlands Technology Group
1.4xn/aUS$85.38m
RGS Regis
0.7xn/aUS$57.77m
REDU RISE Education Cayman
1xn/aUS$40.41m
EDU 25.7xIndustry Avg. 19.7xNo. of Companies8PE01632486480+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EDU is expensive based on its Price-To-Earnings Ratio (25.7x) compared to the US Consumer Services industry average (19.7x).

Price to Earnings Ratio vs Fair Ratio

What is EDU'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.

EDU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.7x
Fair PE Ratio25.9x

Price-To-Earnings vs Fair Ratio: EDU is good value based on its Price-To-Earnings Ratio (25.7x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

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 EDU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$61.27
US$85.66
+39.8%
11.3%US$109.50US$62.00n/a23
Dec ’25US$58.32
US$86.24
+47.9%
12.0%US$109.50US$62.00n/a23
Nov ’25US$62.69
US$86.73
+38.4%
11.8%US$109.50US$62.00n/a24
Oct ’25US$77.19
US$90.97
+17.9%
12.5%US$109.45US$62.00n/a23
Sep ’25US$61.48
US$93.30
+51.8%
11.7%US$109.45US$62.00n/a24
Aug ’25US$61.75
US$93.46
+51.4%
11.7%US$109.45US$62.00n/a24
Jul ’25US$79.00
US$100.51
+27.2%
13.2%US$127.00US$62.00n/a24
Jun ’25US$79.93
US$100.61
+25.9%
13.3%US$127.00US$62.00n/a24
May ’25US$78.39
US$99.99
+27.6%
13.7%US$127.00US$62.00n/a22
Apr ’25US$87.51
US$98.70
+12.8%
16.9%US$122.00US$51.00n/a22
Mar ’25US$96.04
US$94.27
-1.8%
16.9%US$122.00US$51.00n/a22
Feb ’25US$78.24
US$92.83
+18.6%
16.1%US$114.00US$51.00n/a21
Jan ’25US$73.28
US$80.94
+10.5%
16.1%US$100.55US$47.00n/a21
Dec ’24US$81.63
US$78.07
-4.4%
15.4%US$98.00US$47.00US$58.3220
Nov ’24US$66.14
US$76.34
+15.4%
16.1%US$98.00US$47.00US$62.6918
Oct ’24US$58.55
US$64.60
+10.3%
15.5%US$85.00US$36.00US$77.1918
Sep ’24US$58.16
US$61.99
+6.6%
18.3%US$85.00US$36.00US$61.4818
Aug ’24US$56.05
US$61.00
+8.8%
19.3%US$85.00US$36.00US$61.7516
Jul ’24US$39.49
US$52.06
+31.8%
23.4%US$70.00US$24.00US$79.0016
Jun ’24US$41.28
US$51.28
+24.2%
23.9%US$70.00US$24.00US$79.9315
May ’24US$44.33
US$50.21
+13.3%
23.9%US$70.00US$24.00US$78.3914
Apr ’24US$38.61
US$47.57
+23.2%
23.0%US$65.00US$24.00US$87.5113
Mar ’24US$40.99
US$47.72
+16.4%
22.9%US$65.00US$24.00US$96.0413
Feb ’24US$45.16
US$46.17
+2.2%
22.7%US$65.00US$24.00US$78.2413
Jan ’24US$34.82
US$37.26
+7.0%
21.0%US$54.00US$24.00US$73.2814
Dec ’23US$28.36
US$36.19
+27.6%
19.0%US$54.00US$24.00US$81.6314

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:39
End of Day Share Price 2024/12/20 00:00
Earnings2024/08/31
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 here.

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 .

Analyst Sources

New Oriental Education & Technology Group Inc. is covered by 59 analysts. 26 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