TAL Valuation

TAL Education Group

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10.950

-0.49(-4.283%)1D

Overview
Forecast
Valuation
Earnings

TAL Relative Valuation

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

Historical Valuation

TAL Education Group (TAL) is now in the Fair zone, suggesting that its current forward PS ratio of 2.26 is considered Fairly compared with the five-year average of 42.53. The fair price of TAL Education Group (TAL) is between 7.73 to 25.25 according to relative valuation methord.

Relative Value

Fair Zone

7.73-25.25

Current Price：10.95

Fair

26.09

Trailing

Forward

17.25

EV/EBITDA

TAL Education Group. (TAL) has a current EV/EBITDA of 17.25. The 5-year average EV/EBITDA is 73.58. The thresholds are as follows: Strongly Undervalued below -240.57, Undervalued between -240.57 and -83.49, Fairly Valued between 230.66 and -83.49, Overvalued between 230.66 and 387.73, and Strongly Overvalued above 387.73. The current Forward EV/EBITDA of 17.25 falls within the Historic Trend Line -Fairly Valued range.

26.77

EV/EBIT

TAL Education Group. (TAL) has a current EV/EBIT of 26.77. The 5-year average EV/EBIT is -66.92. The thresholds are as follows: Strongly Undervalued below -670.62, Undervalued between -670.62 and -368.77, Fairly Valued between 234.94 and -368.77, Overvalued between 234.94 and 536.79, and Strongly Overvalued above 536.79. The current Forward EV/EBIT of 26.77 falls within the Historic Trend Line -Fairly Valued range.

2.26

TAL Education Group. (TAL) has a current PS of 2.26. The 5-year average PS is 3.71. The thresholds are as follows: Strongly Undervalued below -0.82, Undervalued between -0.82 and 1.45, Fairly Valued between 5.97 and 1.45, Overvalued between 5.97 and 8.23, and Strongly Overvalued above 8.23. The current Forward PS of 2.26 falls within the Historic Trend Line -Fairly Valued range.

11.38

P/OCF

TAL Education Group. (TAL) has a current P/OCF of 11.38. The 5-year average P/OCF is 92.57. The thresholds are as follows: Strongly Undervalued below -512.91, Undervalued between -512.91 and -210.17, Fairly Valued between 395.30 and -210.17, Overvalued between 395.30 and 698.04, and Strongly Overvalued above 698.04. The current Forward P/OCF of 11.38 falls within the Historic Trend Line -Fairly Valued range.

13.51

P/FCF

TAL Education Group. (TAL) has a current P/FCF of 13.51. The 5-year average P/FCF is -6.50. The thresholds are as follows: Strongly Undervalued below -155.89, Undervalued between -155.89 and -81.20, Fairly Valued between 68.20 and -81.20, Overvalued between 68.20 and 142.90, and Strongly Overvalued above 142.90. The current Forward P/FCF of 13.51 falls within the Historic Trend Line -Fairly Valued range.

TAL Education Group (TAL) has a current Price-to-Book (P/B) ratio of 1.94. Compared to its 3-year average P/B ratio of 1.52 , the current P/B ratio is approximately 27.72% higher. Relative to its 5-year average P/B ratio of 2.98, the current P/B ratio is about -34.90% higher. TAL Education Group (TAL) has a Forward Free Cash Flow (FCF) yield of approximately 5.56%. Compared to its 3-year average FCF yield of 2.22%, the current FCF yield is approximately 150.46% lower. Relative to its 5-year average FCF yield of -1.41% , the current FCF yield is about -493.23% lower.

1.94

P/B

Median3y

1.52

Median5y

2.98

5.56

FCF Yield

Median3y

2.22

Median5y

-1.41

Competitors Valuation Multiple

The average P/S ratio for TAL's competitors is 1.91, providing a benchmark for relative valuation. TAL Education Group Corp (TAL) exhibits a P/S ratio of 2.26, which is 18.11% above the industry average. Given its robust revenue growth of 38.83%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Bright Horizons Family Solutions Inc

Charles River Laboratories International Inc

Performance Decomposition

Market capitalization of TAL increased by 42.29% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.73 to 5.43.

The secondary factor is the Revenue Growth, contributed 38.83%to the performance.

Overall, the performance of TAL in the past 1 year is driven by Margin Expansion. Which is more sustainable.

38.83%

414.19M → 575.00M

Revenue Growth

98.90%

2.73 → 5.43

Margin Expansion

-95.44%

1.51K → 68.64

P/E Change

42.29%