New Oriental Education & Technology (EDU) Fair Value & Analysis
Consumer Defensive · US · Market cap $7.5B · ISIN US6475812060
What is New Oriental Education & Technology really worth?
New Oriental Education & Technology
EDU · US
A solid business, but trading 20% above our fair value of $48.37.
Strengths
Risks
For context
Fair value as of: Sep 5, 2026
From 26 valuation models · updated today
Share price +3.4% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits in the upper half of our model range, so the margin of safety is thin.
- The data supports the verdict: every model runs on fully documented inputs.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.
How to read this chart
60‑month range $8.37 – $94.36 · fair‑value band $37.55 – $59.20 · the $58.22 price screens above the $48.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 5, 2026.
Analysis
New Oriental Education & Technology (EDU) currently trades at $58.22, while our model-based Fair Value estimate is $48.37, implying the stock looks roughly 20.4% overvalued today. The Quality Score stands at 74/100 (solid quality), in the Consumer Defensive sector. Bull case: the DCF Models group reads highest at a median of $83.64 per share, and 13 of the 26 models we run sit above the $58.22 price. Bear case: the Dividend Discount group reads lowest at $9.33, and 13 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, New Oriental Education & Technology generated revenue of $5.4B at a net margin of 7.8%. Revenue grew 19.8% year over year. It earns a return on equity of 10.8%. The balance sheet holds a net cash position of $809M. Fundamentals as of Sep 5, 2026
Our scenario range runs from $37.55 (bear case) to $59.20 (bull case); at $58.22, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 43% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 8% fair-value upside, at −17%, EDU screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly $1.50 per share, which is 3.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models ($83.64) versus Dividend Discount ($9.33). Highest evidence: FCF DCF (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 72 · Market factors (momentum, volatility) 67
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
New Oriental Education & Technology Group Inc. engages in the provision of private educational services under the New Oriental brand in the People's Republic of China.
Full company description
New Oriental Education & Technology Group Inc. engages in the provision of private educational services under the New Oriental brand in the People's Republic of China. The company operates through four segments: Educational Services and Test Preparation Courses; Private Label Products and Livestreaming E-Commerce; Overseas Study Consulting Services; and Educational Materials and Distribution. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People's Republic of China. It also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services. In addition, the company offers online education services through the Koolearn.com platform. Further, it develops and edits educational materials for language training and test preparation. In addition, the company offers educational programs, services, and products to students through schools; learning centers; and bookstores, as well as through its online learning platforms. New Oriental Education & Technology Group Inc. was founded in 1993 and is headquartered in Beijing, the People's Republic of China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
New Oriental Education & Technology reported revenue of $4.9B in FY2025 versus $4.3B in FY2021, a compound +3.5%/yr. Reported net income was $372M in FY2025, compounding +2.7%/yr from FY2021.
of which total revenue +13.6 % · buybacks/dilution −0.6 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
EDU screens 20% overvalued. Compare with TAL Education Group →
Peer Group
Education & Training Services · 142 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Education & Training Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| TAL Education Group TAL | $11.69 | $15.60 | +33% |
| Laureate Education, Inc LAUR | $38.36 | $41.45 | +8% |
| Physicswallah Limited PWL | ₹119.46 | ₹13.69 | −89% |
| Grand Canyon Education, Inc LOPE | $151.19 | $152.01 | +1% |
| Covista Inc CVSA | $128.22 | $135.45 | +6% |
| Stride, Inc LRN | $84.58 | $139.45 | +65% |
| Universal Technical Institute, Inc UTI | $25.64 | $20.98 | −18% |
| Perdoceo Education Corporation PRDO | $33.81 | $40.65 | +20% |
| Strategic Education, Inc STRA | $81.90 | $105.48 | +29% |
| Offcn Education Technology Co 002607 | ¥2.03 | ¥0.3300 | −84% |
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