Gaotu Techedu Inc.

NYSE:GOTU Stock Report

Market Cap: US$551.9m

Gaotu Techedu Valuation

Is GOTU 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: GOTU ($2.14) is trading below our estimate of fair value ($25.55)

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

Key Valuation Metric

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

Key metric: As GOTU is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for GOTU. This is calculated by dividing GOTU's market cap by their current revenue.
What is GOTU's PS Ratio?
PS Ratio1x
SalesCN¥3.93b
Market CapCN¥4.04b

Price to Sales Ratio vs Peers

How does GOTU's PS Ratio compare to its peers?

The above table shows the PS ratio for GOTU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
LINC Lincoln Educational Services
1.1x8.3%US$480.7m
ZSPC zSpace
6.3xn/aUS$276.5m
APEI American Public Education
0.6x4.3%US$375.5m
DAO Youdao
1.1x11.8%US$852.2m
GOTU Gaotu Techedu
1x29.1%US$551.9m

Price-To-Sales vs Peers: GOTU is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

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

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
WW WW International
0.2x-3.7%US$114.20m
QSG QuantaSing Group
0.2x-0.5%US$108.36m
BEDU Bright Scholar Education Holdings
0.2xn/aUS$49.05m
BODI Beachbody Company
0.1x-12.9%US$42.65m
GOTU 1.0xIndustry Avg. 1.4xNo. of Companies15PS012345+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GOTU is good value based on its Price-To-Sales Ratio (1x) compared to the US Consumer Services industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

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

GOTU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: GOTU is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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 GOTU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$2.14
US$4.24
+98.1%
28.0%US$6.18US$1.94n/a7
Dec ’25US$2.81
US$4.80
+70.7%
20.2%US$6.11US$2.90n/a6
Nov ’25US$3.08
US$4.99
+62.2%
20.3%US$6.26US$2.97n/a7
Oct ’25US$3.94
US$5.17
+31.1%
21.3%US$6.67US$2.94n/a8
Sep ’25US$3.18
US$5.70
+79.3%
30.1%US$9.19US$2.95n/a8
Aug ’25US$4.23
US$8.84
+109.1%
19.7%US$12.32US$6.56n/a8
Jul ’25US$4.92
US$8.84
+79.8%
19.7%US$12.32US$6.56n/a8
Jun ’25US$5.70
US$8.84
+55.2%
19.7%US$12.32US$6.56n/a8
May ’25US$6.49
US$8.85
+36.3%
19.7%US$12.27US$6.56n/a7
Apr ’25US$7.09
US$8.94
+26.0%
21.1%US$12.35US$6.60n/a6
Mar ’25US$8.09
US$8.14
+0.6%
36.1%US$12.34US$2.95n/a6
Feb ’25US$3.65
US$4.19
+14.9%
22.3%US$5.90US$2.95n/a6
Jan ’25US$3.62
US$3.34
-7.7%
35.0%US$5.50US$2.31US$2.196
Dec ’24US$2.86
US$3.06
+7.1%
24.7%US$4.30US$2.30US$2.816
Nov ’24US$2.31
US$4.18
+81.1%
41.3%US$6.20US$1.30US$3.085
Oct ’24US$2.76
US$4.18
+51.6%
41.3%US$6.20US$1.30US$3.945
Sep ’24US$2.94
US$4.18
+42.3%
41.3%US$6.20US$1.30US$3.185
Aug ’24US$3.94
US$4.42
+12.3%
43.8%US$6.54US$1.25US$4.235
Jul ’24US$2.89
US$4.46
+54.2%
43.9%US$6.60US$1.26US$4.925
Jun ’24US$2.55
US$4.05
+59.0%
44.4%US$6.10US$1.26US$5.704
May ’24US$3.37
US$4.09
+21.4%
43.7%US$6.13US$1.30US$6.494
Apr ’24US$4.22
US$3.77
-10.7%
52.1%US$6.09US$1.29US$7.093
Mar ’24US$3.48
US$3.16
-9.2%
44.4%US$4.70US$1.31US$8.093
Feb ’24US$4.21
US$2.48
-41.0%
55.8%US$4.43US$1.34US$3.653
Jan ’24US$2.36
US$2.45
+3.7%
55.3%US$4.35US$1.30US$3.623

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 Analysis2025/01/03 19:49
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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

Gaotu Techedu Inc. is covered by 17 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul Robert DewberryBofA Global Research
Yishan LiChina Merchants Securities (HK) Co., Ltd
Yiwen ZhangChina Renaissance Securities