GSX Techedu Inc., a technology-driven education company, provides online K-12 large-class after-school tutoring services in the People’s Republic of China.
The last earnings update was 77 days ago.
Discounted Cash Flow Calculation for NYSE:GSX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NYSE:GSX DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
GSX Techedu's share price is below the future cash flow value, and at a moderate discount (> 20%).
GSX Techedu's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
GSX Techedu's earnings available for a low price, and how does
this compare to other companies in the same industry?
GSX Techedu's earnings are expected to grow significantly at over 20% yearly.
GSX Techedu's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
GSX Techedu's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Larry Xiangdong Chen is a Founder of GSX Techedu Inc., and has served as its Chairman of the Board and Chief Executive Officer since August 2014. Prior to founding GSX Techedu Inc., Mr. Chen served as the Executive President of New Oriental Education & Technology Group Inc., or New Oriental Education, from November 2010 to January 2014. Mr. Chen joined New Oriental in 1999. He was promoted to be Senior Vice President in January 2006, and from 2001 to January 2002 he served as Executive Assistant to the Chief Executive Officer of New Oriental Education. From 2002 to 2003, Mr. Chen was the President of Wuhan New Oriental School. Mr. Chen was promoted to Vice President in September 2003, and in this capacity was in charge of a number of departments at New Oriental Education’s Headquarters, including its short-term training system, human resources, marketing and public relations and business development. Mr. Chen received his master’s and Ph.D. degrees in economics from Renmin University of China. Mr. Chen completed the General Manager Program at Harvard Business School in 2005.
Insufficient data for Larry to compare compensation growth.
Insufficient data for Larry to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Chairman of the Board & CEO
Chief Financial Officer
VP & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the GSX Techedu board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board & CEO
VP & Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
GSX Techedu Inc., a technology-driven education company, provides online K-12 large-class after-school tutoring services in the People’s Republic of China. It offers K-12 large-class after-school tutoring courses that cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides English courses for children in kindergarten; and courses that help children in grade one through grade seven. In addition, it offers foreign language courses comprising English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher’s qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. Further, the company provides personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Additionally, it offers other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, the People’s Republic of China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited.
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