New Oriental Education & Technology (EDU) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
New Oriental Education & Technology stock (EDU) is currently trading at $56.49. New Oriental Education & Technology PE ratio is 23.04. New Oriental Education & Technology PS ratio (Price-to-Sales) is 1.79. Analyst consensus price target for EDU is $68.34. WallStSmart rates EDU as Hold.
- EDU PE ratio analysis and historical PE chart
- EDU PS ratio (Price-to-Sales) history and trend
- EDU intrinsic value — DCF, Graham Number, EPV models
- EDU stock price prediction 2025 2026 2027 2028 2029 2030
- EDU fair value vs current price
- EDU insider transactions and insider buying
- Is EDU undervalued or overvalued?
- New Oriental Education & Technology financial analysis — revenue, earnings, cash flow
- EDU Piotroski F-Score and Altman Z-Score
- EDU analyst price target and Smart Rating
New Oriental Education & Technology
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EDU Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · New Oriental Education & Technology (EDU)
EDU trades at a significant discount to its Graham intrinsic value of $112.32, offering a 45% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
New Oriental Education & Technology (EDU) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, eps growth. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
New Oriental Education & Technology (EDU) Key Strengths (4)
Growing significantly faster than its price suggests
Earnings per share surging 45.90% year-over-year
Paying $1.79 for every $1 of annual revenue
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
New Oriental Education & Technology (EDU) Areas to Watch (6)
Very thin margins with limited operational efficiency
Low profitability relative to shareholder equity
Thin profit margins with limited profitability
Fairly priced relative to book value
Solid revenue growth at 14.70% per year
Moderate institutional interest at 36.36%
New Oriental Education & Technology (EDU) Detailed Analysis Report
Overall Assessment
This company scores 62/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.8/10) while 6 fall into concern territory (avg 4.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, EPS Growth, Price/Sales. Valuation metrics including PEG Ratio (0.92), Price/Sales (1.79) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 45.90%.
The Bear Case
The primary concerns are Operating Margin, Return on Equity, Profit Margin. Some valuation metrics including Price/Book (2.25) suggest expensive pricing. Growth concerns include Revenue Growth at 14.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.89%, Operating Margin at 5.57%, Profit Margin at 7.40%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.89% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 14.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, EPS Growth) and negatives (Operating Margin, Return on Equity). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
EDU Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
EDU's Price-to-Sales ratio of 1.79x trades at a deep discount to its historical average of 12.67x (15th percentile). The current valuation is 98% below its historical high of 82.05x set in Oct 2007, and 3486% above its historical low of 0.05x in Jan 2022. Over the past 12 months, the PS ratio has expanded from ~1.6x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for New Oriental Education & Technology (EDU) · CONSUMER DEFENSIVE › EDUCATION & TRAINING SERVICES
The Big Picture
New Oriental Education & Technology operates as a stable business with moderate growth and solid fundamentals. Revenue reached 5.1B with 15% growth year-over-year. Profit margins are thin at 7.4%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 516M in free cash flow and 516M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can New Oriental Education & Technology push profit margins above 15% as the business scales?
Sector dynamics: monitor EDUCATION & TRAINING SERVICES industry trends, competitive moves, and regulatory changes that could impact New Oriental Education & Technology.
Bottom Line
New Oriental Education & Technology offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 11:32:41 AM
About New Oriental Education & Technology(EDU)
NYSE
CONSUMER DEFENSIVE
EDUCATION & TRAINING SERVICES
China
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.