GOTU Valuation

Gaotu Techedu Inc

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2.710

-0.04(-1.455%)1D

GOTU Relative Valuation

GOTU'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, GOTU is overvalued; if below, it's undervalued.

Historical Valuation

Gaotu Techedu Inc (GOTU) is now in the Fair zone, suggesting that its current forward PS ratio of 19.30 is considered Fairly compared with the five-year average of 5.16. The fair price of Gaotu Techedu Inc (GOTU) is between to according to relative valuation methord.

Relative Value

Fair Zone

Current Price：2.71

Fair

-275.73

Trailing

Forward

-20.54

EV/EBITDA

Gaotu Techedu Inc. (GOTU) has a current EV/EBITDA of -20.54. The 5-year average EV/EBITDA is -37.68. The thresholds are as follows: Strongly Undervalued below -345.09, Undervalued between -345.09 and -191.39, Fairly Valued between 116.02 and -191.39, Overvalued between 116.02 and 269.72, and Strongly Overvalued above 269.72. The current Forward EV/EBITDA of -20.54 falls within the Historic Trend Line -Fairly Valued range.

-6.73

EV/EBIT

Gaotu Techedu Inc. (GOTU) has a current EV/EBIT of -6.73. The 5-year average EV/EBIT is 2.76. The thresholds are as follows: Strongly Undervalued below -327.34, Undervalued between -327.34 and -162.29, Fairly Valued between 167.81 and -162.29, Overvalued between 167.81 and 332.86, and Strongly Overvalued above 332.86. The current Forward EV/EBIT of -6.73 falls within the Historic Trend Line -Fairly Valued range.

19.30

Gaotu Techedu Inc. (GOTU) has a current PS of 19.30. The 5-year average PS is 2.84. The thresholds are as follows: Strongly Undervalued below -6.10, Undervalued between -6.10 and -1.63, Fairly Valued between 7.31 and -1.63, Overvalued between 7.31 and 11.78, and Strongly Overvalued above 11.78. The current Forward PS of 19.30 falls within the Strongly Overvalued range.

7.45

P/OCF

Gaotu Techedu Inc. (GOTU) has a current P/OCF of 7.45. The 5-year average P/OCF is 9.65. The thresholds are as follows: Strongly Undervalued below -87.63, Undervalued between -87.63 and -38.99, Fairly Valued between 58.29 and -38.99, Overvalued between 58.29 and 106.93, and Strongly Overvalued above 106.93. The current Forward P/OCF of 7.45 falls within the Historic Trend Line -Fairly Valued range.

10.41

P/FCF

Gaotu Techedu Inc. (GOTU) has a current P/FCF of 10.41. The 5-year average P/FCF is -5.51. The thresholds are as follows: Strongly Undervalued below -140.94, Undervalued between -140.94 and -73.23, Fairly Valued between 62.20 and -73.23, Overvalued between 62.20 and 129.91, and Strongly Overvalued above 129.91. The current Forward P/FCF of 10.41 falls within the Historic Trend Line -Fairly Valued range.

Gaotu Techedu Inc (GOTU) has a current Price-to-Book (P/B) ratio of 2.93. Compared to its 3-year average P/B ratio of 2.57 , the current P/B ratio is approximately 13.93% higher. Relative to its 5-year average P/B ratio of 7.85, the current P/B ratio is about -62.68% higher. Gaotu Techedu Inc (GOTU) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.33%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -7.06% , the current FCF yield is about -100.00% lower.

2.93

P/B

Median3y

2.57

Median5y

7.85

0.00

FCF Yield

Median3y

0.33

Median5y

-7.06

Competitors Valuation Multiple

The average P/S ratio for GOTU's competitors is 40.24, providing a benchmark for relative valuation. Gaotu Techedu Inc Corp (GOTU) exhibits a P/S ratio of 19.30, which is -52.03% above the industry average. Given its robust revenue growth of 37.59%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Resolute Holdings Management Inc

Performance Decomposition

Market capitalization of GOTU decreased by 3.56% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.01B to 1.39B.

The secondary factor is the P/E Change, contributed 22.30%to the performance.

Overall, the performance of GOTU in the past 1 year is driven by Revenue Growth. Which is more sustainable.

37.59%

1.01B → 1.39B

Revenue Growth

-63.45%

-42.54 → -15.55

Margin Expansion

22.30%

-5.67 → -6.94

P/E Change

-3.56%