GOTU PE Ratio & Valuation,Is GOTU Overvalued

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 0.00 is considered Fairly compared with the five-year average of -1.42. The fair price of Gaotu Techedu Inc (GOTU) is between NaN to NaN according to relative valuation methord.

Relative Value

Fair Zone

NaN-NaN

Current Price：2.38

Fair

-220.81

-33.52

EV/EBITDA

Gaotu Techedu Inc. (GOTU) has a current EV/EBITDA of -33.52. The 5-year average EV/EBITDA is -36.84. The thresholds are as follows: Strongly Undervalued below -341.71, Undervalued between -341.71 and -189.27, Fairly Valued between 115.59 and -189.27, Overvalued between 115.59 and 268.02, and Strongly Overvalued above 268.02. The current Forward EV/EBITDA of -33.52 falls within the Historic Trend Line -Fairly Valued range.

-10.81

EV/EBIT

Gaotu Techedu Inc. (GOTU) has a current EV/EBIT of -10.81. The 5-year average EV/EBIT is 3.63. The thresholds are as follows: Strongly Undervalued below -323.31, Undervalued between -323.31 and -159.84, Fairly Valued between 167.10 and -159.84, Overvalued between 167.10 and 330.58, and Strongly Overvalued above 330.58. The current Forward EV/EBIT of -10.81 falls within the Historic Trend Line -Fairly Valued range.

0.59

Gaotu Techedu Inc. (GOTU) has a current PS of 0.59. The 5-year average PS is 2.48. The thresholds are as follows: Strongly Undervalued below -5.63, Undervalued between -5.63 and -1.58, Fairly Valued between 6.53 and -1.58, Overvalued between 6.53 and 10.59, and Strongly Overvalued above 10.59. The current Forward PS of 0.59 falls within the Historic Trend Line -Fairly Valued range.

7.06

P/OCF

Gaotu Techedu Inc. (GOTU) has a current P/OCF of 7.06. The 5-year average P/OCF is 10.41. The thresholds are as follows: Strongly Undervalued below -85.40, Undervalued between -85.40 and -37.50, Fairly Valued between 58.32 and -37.50, Overvalued between 58.32 and 106.23, and Strongly Overvalued above 106.23. The current Forward P/OCF of 7.06 falls within the Historic Trend Line -Fairly Valued range.

11.72

P/FCF

Gaotu Techedu Inc. (GOTU) has a current P/FCF of 11.72. The 5-year average P/FCF is 1.85. The thresholds are as follows: Strongly Undervalued below -94.24, Undervalued between -94.24 and -46.19, Fairly Valued between 49.90 and -46.19, Overvalued between 49.90 and 97.95, and Strongly Overvalued above 97.95. The current Forward P/FCF of 11.72 falls within the Historic Trend Line -Fairly Valued range.

Gaotu Techedu Inc (GOTU) has a current Price-to-Book (P/B) ratio of 2.87. Compared to its 3-year average P/B ratio of 2.66 , the current P/B ratio is approximately 7.72% higher. Relative to its 5-year average P/B ratio of 4.61, the current P/B ratio is about -37.84% 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 -7.05% , the current FCF yield is about -100.00% lower.

2.87

P/B

Median3y

2.66

Median5y

4.61

0.00

FCF Yield

Median3y

0.33

Median5y

-7.05

Competitors Valuation Multiple

The average P/S ratio for GOTU's competitors is 0.00, providing a benchmark for relative valuation. Gaotu Techedu Inc Corp (GOTU) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 30.69%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GOTU increased by 8.68% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -7.16 to -11.04.

The secondary factor is the Revenue Growth, contributed 30.69%to the performance.

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

30.69%

1.21B → 1.58B

Revenue Growth

-76.10%

-39.00 → -9.32

Margin Expansion

54.09%

-7.16 → -11.04

P/E Change

8.68%

2.19 → 2.38

Mkt Cap Growth

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Frequently Asked Questions

Is Gaotu Techedu Inc (GOTU) currently overvalued or undervalued?

What is Gaotu Techedu Inc (GOTU) fair value?

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. The fair price of Gaotu Techedu Inc (GOTU) is between NaN to NaN according to relative valuation methord.

How does GOTU's valuation metrics compare to the industry average?

What is the current P/B ratio for Gaotu Techedu Inc (GOTU) as of Dec 16 2025?

As of Dec 16 2025, Gaotu Techedu Inc (GOTU) has a P/B ratio of 2.87. This indicates that the market values GOTU at 2.87 times its book value.

What is the current FCF Yield for Gaotu Techedu Inc (GOTU) as of Dec 16 2025?

As of Dec 16 2025, Gaotu Techedu Inc (GOTU) has a FCF Yield of 0.00%. This means that for every dollar of Gaotu Techedu Inc’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Gaotu Techedu Inc (GOTU) as of Dec 16 2025?

As of Dec 16 2025, Gaotu Techedu Inc (GOTU) has a Forward P/E ratio of -220.81. This means the market is willing to pay $-220.81 for every dollar of Gaotu Techedu Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Gaotu Techedu Inc (GOTU) as of Dec 16 2025?

As of Dec 16 2025, Gaotu Techedu Inc (GOTU) has a Forward P/S ratio of 0.00. This means the market is valuing GOTU at $0.00 for every dollar of expected revenue over the next 12 months.

GOTU Valuation