New Oriental Education & Technology Group Inc. (EDU) Valuation — DCF, Graham & Comparables

New Oriental Education & Technology Group Inc. (EDU) — Price $48.68 (closing price, October 30, 2026) — Consumer Defensive — Education & Training Services — NYSE

Latest reported results:

Valuation dashboard for New Oriental Education & Technology Group Inc. (EDU) with P/E 16.39, P/B 1.78, EV/EBITDA 8.53 and dividend yield 2.45%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Defensive companies.

New Oriental Education & Technology Group Inc. (EDU) operates as a prominent private education provider throughout the People's Republic of China, primarily recognized by its "New Oriental" brand. The company organizes its operations across key segments: K-12 After-School Tutoring (AST), Test Preparation and various other courses, and a dedicated Online Education division.

Analysis Summary

New Oriental Education & Technology Group Inc. reported revenue of $5.68B in the most recent fiscal year, growing at a 5-year CAGR of 5.8%. Net income reached $476.9M, with a 7.4% 5-year CAGR.

Trailing-twelve-month margins: gross margin 54.3%, operating margin 11.8%, net margin 8.4%.

At $48.68 (closing price, October 30, 2026), EDU trades at a P/E of 16.39 and an ROE of 12.52%. Market capitalisation stands at $7.5B.

Balance sheet quality for EDU: current ratio of 1.5. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio16.39
Price / Book1.78
EV / EBITDA8.53
Dividend Yield2.45%

Valuation Models

DCF Fair Value$-11.09
vs Current Price-122.8%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
EDUNew Oriental Education & Technology Group Inc.$7.5B16.391.7812.5%
TALTAL Education Group$6.0B7.520.4419.0%
LAURLaureate Education, Inc.$4.6B12.263.9334.2%
CVSACovista Inc.$4.2B15.983.0818.3%
LOPEGrand Canyon Education, Inc.$3.9B17.885.7831.2%
LRNStride, Inc.$3.3B10.901.9620.6%
MHMcGraw Hill, Inc.$2.6B28.383.1912.0%
DAOYoudao, Inc.$2.4B100.34-8.2%

Price

Price$48.68 (closing price, October 30, 2026)
Market Cap$7.5B
ExchangeNYSE
CountryCN

Profitability

Return on Equity12.52%
Return on Invested Capital9.34%
Return on Assets5.72%
Gross Margin54.31%
Operating Margin11.76%
Net Margin8.44%

Related companies: TAL · LAUR · CVSA · LOPE · LRN · MH · DAO

Explore sector: Consumer Defensive · Education & Training Services

More sections of EDU: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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