EDU Valuation

New Oriental Education & Technology Group Inc

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46.710

-0.74(-1.560%)1D

Overview
Forecast
Valuation
Earnings

EDU Relative Valuation

EDU's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EDU is overvalued; if below, it's undervalued.

Historical Valuation

New Oriental Education & Technology Group Inc (EDU) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.00 is considered Undervalued compared with the five-year average of 13.86. The fair price of New Oriental Education & Technology Group Inc (EDU) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 46.71 USD , New Oriental Education & Technology Group Inc is Undervalued By Fair.

Relative Value

Fair Zone

+Inf-+Inf

Current Price：46.71

Fair

Undervalued

14.01

Trailing

Forward

6.02

EV/EBITDA

New Oriental Education & Technology Group Inc. (EDU) has a current EV/EBITDA of 6.02. The 5-year average EV/EBITDA is 1.55. The thresholds are as follows: Strongly Undervalued below -87.17, Undervalued between -87.17 and -42.81, Fairly Valued between 45.91 and -42.81, Overvalued between 45.91 and 90.27, and Strongly Overvalued above 90.27. The current Forward EV/EBITDA of 6.02 falls within the Historic Trend Line -Fairly Valued range.

7.37

EV/EBIT

New Oriental Education & Technology Group Inc. (EDU) has a current EV/EBIT of 7.37. The 5-year average EV/EBIT is 7.65. The thresholds are as follows: Strongly Undervalued below -32.17, Undervalued between -32.17 and -12.26, Fairly Valued between 27.56 and -12.26, Overvalued between 27.56 and 47.46, and Strongly Overvalued above 47.46. The current Forward EV/EBIT of 7.37 falls within the Historic Trend Line -Fairly Valued range.

1.46

New Oriental Education & Technology Group Inc. (EDU) has a current PS of 1.46. The 5-year average PS is 2.48. The thresholds are as follows: Strongly Undervalued below -0.92, Undervalued between -0.92 and 0.78, Fairly Valued between 4.18 and 0.78, Overvalued between 4.18 and 5.89, and Strongly Overvalued above 5.89. The current Forward PS of 1.46 falls within the Historic Trend Line -Fairly Valued range.

10.38

P/OCF

New Oriental Education & Technology Group Inc. (EDU) has a current P/OCF of 10.38. The 5-year average P/OCF is 12.00. The thresholds are as follows: Strongly Undervalued below -75.79, Undervalued between -75.79 and -31.89, Fairly Valued between 55.89 and -31.89, Overvalued between 55.89 and 99.78, and Strongly Overvalued above 99.78. The current Forward P/OCF of 10.38 falls within the Historic Trend Line -Fairly Valued range.

13.96

P/FCF

New Oriental Education & Technology Group Inc. (EDU) has a current P/FCF of 13.96. The 5-year average P/FCF is 13.66. The thresholds are as follows: Strongly Undervalued below -8.77, Undervalued between -8.77 and 2.45, Fairly Valued between 24.88 and 2.45, Overvalued between 24.88 and 36.09, and Strongly Overvalued above 36.09. The current Forward P/FCF of 13.96 falls within the Historic Trend Line -Fairly Valued range.

New Oriental Education & Technology Group Inc (EDU) has a current Price-to-Book (P/B) ratio of 0.20. Compared to its 3-year average P/B ratio of 0.75 , the current P/B ratio is approximately -72.94% higher. Relative to its 5-year average P/B ratio of 0.56, the current P/B ratio is about -63.88% higher. New Oriental Education & Technology Group Inc (EDU) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.05%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -3.90% , the current FCF yield is about -100.00% lower.

0.20

P/B

Median3y

0.75

Median5y

0.56

11.55

FCF Yield

Median3y

5.05

Median5y

-3.90

Competitors Valuation Multiple

The average P/S ratio for EDU's competitors is 4.65, providing a benchmark for relative valuation. New Oriental Education & Technology Group Inc Corp (EDU) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 9.37%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

EDU.N

New Oriental Education & Technology Group Inc

Service Corporation International

Performance Decomposition

Market capitalization of EDU decreased by 23.27% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 1.56 to 2.04.

The secondary factor is the Revenue Growth, contributed 9.37%to the performance.

Overall, the performance of EDU in the past 1 year is driven by P/E Change. Which is more unsustainable.

9.37%

1.14B → 1.24B

Revenue Growth

-63.89%

2.52 → 0.91

Margin Expansion

31.25%

1.56 → 2.04

P/E Change

-23.27%