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 1.37 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 48.17 to 137.31 according to relative valuation methord. Compared to the current price of 44.65 USD , New Oriental Education & Technology Group Inc is Undervalued By 7.31%.
Relative Value
Fair Zone
48.17-137.31
Current Price：44.65
7.31%
Undervalued
14.08
PE
1Y
3Y
5Y
Trailing
Forward
5.37
EV/EBITDA
New Oriental Education & Technology Group Inc. (EDU) has a current EV/EBITDA of 5.37. The 5-year average EV/EBITDA is 1.50. The thresholds are as follows: Strongly Undervalued below -87.83, Undervalued between -87.83 and -43.16, Fairly Valued between 46.16 and -43.16, Overvalued between 46.16 and 90.83, and Strongly Overvalued above 90.83. The current Forward EV/EBITDA of 5.37 falls within the Historic Trend Line -Fairly Valued range.
6.54
EV/EBIT
New Oriental Education & Technology Group Inc. (EDU) has a current EV/EBIT of 6.54. The 5-year average EV/EBIT is 7.65. The thresholds are as follows: Strongly Undervalued below -32.44, Undervalued between -32.44 and -12.39, Fairly Valued between 27.70 and -12.39, Overvalued between 27.70 and 47.74, and Strongly Overvalued above 47.74. The current Forward EV/EBIT of 6.54 falls within the Historic Trend Line -Fairly Valued range.
1.37
PS
New Oriental Education & Technology Group Inc. (EDU) has a current PS of 1.37. The 5-year average PS is 2.49. The thresholds are as follows: Strongly Undervalued below -0.92, Undervalued between -0.92 and 0.79, Fairly Valued between 4.20 and 0.79, Overvalued between 4.20 and 5.91, and Strongly Overvalued above 5.91. The current Forward PS of 1.37 falls within the Historic Trend Line -Fairly Valued range.
9.77
P/OCF
New Oriental Education & Technology Group Inc. (EDU) has a current P/OCF of 9.77. The 5-year average P/OCF is 12.01. The thresholds are as follows: Strongly Undervalued below -76.38, Undervalued between -76.38 and -32.18, Fairly Valued between 56.20 and -32.18, Overvalued between 56.20 and 100.40, and Strongly Overvalued above 100.40. The current Forward P/OCF of 9.77 falls within the Historic Trend Line -Fairly Valued range.
13.13
P/FCF
New Oriental Education & Technology Group Inc. (EDU) has a current P/FCF of 13.13. The 5-year average P/FCF is 13.65. The thresholds are as follows: Strongly Undervalued below -8.94, Undervalued between -8.94 and 2.36, Fairly Valued between 24.94 and 2.36, Overvalued between 24.94 and 36.23, and Strongly Overvalued above 36.23. The current Forward P/FCF of 13.13 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 0.19. Compared to its 3-year average P/B ratio of 0.76 , the current P/B ratio is approximately -75.04% higher. Relative to its 5-year average P/B ratio of 0.57, the current P/B ratio is about -66.97% higher. New Oriental Education & Technology Group Inc (EDU) has a Forward Free Cash Flow (FCF) yield of approximately 12.28%. Compared to its 3-year average FCF yield of 4.03%, the current FCF yield is approximately 204.53% lower. Relative to its 5-year average FCF yield of -4.14% , the current FCF yield is about -396.92% lower.
0.20
P/B
Median3y
0.76
Median5y
0.57
12.28
FCF Yield
Median3y
4.03
Median5y
-4.14
Competitors Valuation Multiple
The average P/S ratio for EDU's competitors is 4.16, 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EDU decreased by 24.02% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 1.56 to 2.03.
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.
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FAQ
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