New Oriental Education & Technology (EDU) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of New Oriental Education & Technology stock $83.50, price $54.99, upside +51.8%, quality 73 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $8.37 – $93.21 · fair‑value band $58.45 – $108.55 · the $54.99 price screens below the $83.50 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. As of Nov 7, 2026.
Follow New Oriental Education & Technology in your weekly email
Every Wednesday you see whether New Oriental Education & Technology is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
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.
Show moreShow less
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.
Stock analysis
New Oriental Education & Technology (EDU) currently trades at $54.99, while our model-based Fair Value estimate is $83.50, implying the stock looks roughly 34% undervalued today.
Show more
Valuation
Bull case: the Growth DCF group reads highest at a median of $166.28 per share, and 18 of the 26 models we run sit above the $54.99 price.
Bear case: the Dividend Discount group reads lowest at $11.85, and 8 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $58.45 (bear) to $108.55 (bull), the price of $54.99 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Consumer Defensive sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
New Oriental Education & Technology reported revenue of $5.7B in FY2026 versus $3.1B in FY2022, a compound +16.3%/yr. Reported net income was $477M in FY2026.
Key figures
Market cap $8.7B Mid · P/E ratio 17.2 · P/S ratio 1.45 · EPS (TTM) $3.20 · Dividend yield 3.6% · Net margin 8.4% · Return on equity 12.5% · Return on assets (EBIT) 0.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (medium confidence).
What moves the price
The share trades about 12% below its 52-week high and 24% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 27% fair-value upside, at 52%, EDU screens cheaper than that median.
Fair Value models
Bear$58.45Fair Value $83.50Bull$108.55
Price $54.99 · Upside +51.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 5 months old). Earnings retained since then ($0.5293 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $4.1M and none bought.
SaleChenggang ZhouDirector70,000 shares at $56.73$4.0MAug 10, 2026
SaleYue ZhugeDirector2,170 shares at $59.41$128,915Aug 3, 2026
Plus 7 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+15.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.8%
Start year 2021 (pandemic). Over 10 years: +14.4% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.8%
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+11.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.8%
Dividend (yield on the price)3.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.5% vs 7.7%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.3% → 11%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−24.9%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+12.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −26.7% a year for the price and +9.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (93 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate business quality rests on decent cash flows and expansion via adult test prep plus non-academic courses on the New Oriental Home platform, yet the main weakness is limited evidence of durable competitive advantages amid regulatory exposure.
Main risk: Free generative AI tools from companies like Alibaba and Tencent could replace paid college counseling and study-abroad advisory services, reducing demand for New Oriental's overseas test prep and consulting offerings.
Bull case: New Oriental could integrate its own specialized AI vertical learning systems with study-abroad services to offer hybrid human-AI counseling that maintains premium pricing and attracts more students through efficiency gains.
Bear case: Widespread adoption of free AI chatbots for college planning could erode New Oriental's overseas study and test-prep volumes, forcing reliance on lower-margin non-academic courses and pressuring overall growth.
New Oriental has built growth around adult test prep, non-academic courses and its New Oriental Home platform after rules ended most K-9 academic tutoring. These areas now deliver the bulk of expansion while the company stays within clear regulatory lines. Will the diversified approach create more stable demand than the old model, or will policy changes still constrain the core education business?
Compare New Oriental Education & Technology with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer Groupⓘ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.Education & Training Services · 108 stocks
Beats the industry median on 13/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside+51.8% · Above median
Profitability
Return on equity (12 months)12.5% · Above median
Return on assets5.4% · Above median
Net margin (12 months)8.4% · Above median
Operating margin (12 months)20.0% · Above median
Growth and dividend
Revenue growth (quarter YoY)23.1% · Top 25%
Dividend yield (12 months)3.6% · Above median
Balance sheet
Debt / equity0.00× · Below median
Valuation Multiplesvs Education & Training Services median · lower = cheaper
P/E (12 months)17.2× · Pricier than median
P/B2.18× · Pricier than median
P/S (12 months)1.45× · Cheaper than median
Price / free cash flow (fiscal year)8.5× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "New Oriental Education & Technology Fair Value". https://www.fairvalue-calculator.com/stock/EDU
Frequently asked questions
Is New Oriental Education & Technology (EDU) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $83.50 versus a price of $54.99, about +52% upside (undervalued).
What is the fair value of EDU?
Our model-based fair value for New Oriental Education & Technology is $83.50 (as of Nov 7, 2026), built from audited fundamentals. The current price: $54.99.
What is the quality score of EDU?
New Oriental Education & Technology has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for New Oriental Education & Technology (EDU)?
Our model-based price target is the fair value of $83.50 (as of Nov 7, 2026) from 26 valuation models. Cautious scenario $58.45, optimistic scenario $108.55. It is a calculation from audited fundamentals, not an analyst target.
What is the New Oriental Education & Technology stock forecast for 2026?
Our models put fair value at $83.50, about +52% upside versus a price of $54.99 (undervalued). Cautious scenario $58.45, optimistic scenario $108.55. The calculation is refreshed regularly with new filings.
What is the revenue of New Oriental Education & Technology (EDU)?
New Oriental Education & Technology reported trailing-twelve-month revenue of about $6.0B (latest available figure, as of Nov 7, 2026).
Does New Oriental Education & Technology pay a dividend?
New Oriental Education & Technology currently shows a dividend yield of 3.64% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of New Oriental Education & Technology (EDU) and when is the ex-dividend date?
New Oriental Education & Technology pays a dividend of $2.00 per share a year, a dividend yield of 3.6%. The next ex-dividend date is Nov 18, 2026. The payout ratio is 58.8% of earnings (on adjusted earnings, reported 62.5%). Free cash flow covers the dividend 3.31 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into New Oriental Education & Technology (EDU)?
For today's price to be fair in a discounted-cash-flow model, New Oriental Education & Technology would have to grow free cash flow by -24.9 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.9 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of EDU use?
Our models discount New Oriental Education & Technology at 8.5 %: a base by market capitalisation (mid), damped by beta 0.18, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For New Oriental Education & Technology that is -24.9 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has New Oriental Education & Technology (EDU) delivered so far?
Over the past 5 years revenue at New Oriental Education & Technology grew +5.9 % a year. The price currently implies free-cash-flow growth of -24.9 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of New Oriental Education & Technology (EDU) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into New Oriental Education & Technology (-24.9 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of New Oriental Education & Technology (EDU)?
The free-cash-flow yield on the price is 11.80 %: that much free cash flow New Oriental Education & Technology produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of New Oriental Education & Technology (EDU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For New Oriental Education & Technology it is $83.50 per share (as of Nov 7, 2026), against a price of $54.99. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is New Oriental Education & Technology stock overvalued or undervalued in 2026?
As of Nov 7, 2026, EDU trades below its calculated fair value: price $54.99, fair value $83.50, a gap of about +52% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of EDU?
No. The price is what the market pays today ($54.99); the fair value is what the company's own numbers justify ($83.50). For New Oriental Education & Technology the two are $28.51 per share apart. That gap is exactly why we show both numbers side by side.
How much is New Oriental Education & Technology worth?
The market values New Oriental Education & Technology at about $8.7B (market capitalisation, as of Nov 7, 2026). Per share that is $54.99; our models calculate a fair value of $83.50 per share.
What do the bullish and bearish scenarios say about EDU?
Our models span a range for New Oriental Education & Technology: cautious scenario $58.45, base $83.50, optimistic $108.55 per share (as of Nov 7, 2026, price $54.99). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of EDU?
New Oriental Education & Technology trades at a price-to-earnings ratio of 17.2 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $83.50 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 17.2 (reported for FY2026: 18.3). Other multiples: PEG 0.9, P/B 2.2, P/S 1.4, EV/EBITDA 7.5.
What is the PEG ratio of EDU?
The PEG ratio of New Oriental Education & Technology is 0.85 (P/E divided by earnings growth, as of Nov 7, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of New Oriental Education & Technology (EDU)?
Balance-sheet figures for New Oriental Education & Technology (as of Nov 7, 2026): return on equity 12.5%, debt of 0.00 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is EDU from its 52-week high?
New Oriental Education & Technology trades at $54.99, about 12% below its 52-week high of $62.78 and 24% above the low of $44.44 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $83.50 is for.
Which stocks are comparable to New Oriental Education & Technology?
From the same area (Consumer Defensive) we also value Laureate Education, Inc, Covista Inc, Physicswallah Limited, Grand Canyon Education, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is New Oriental Education & Technology stock attractive at the current price?
The data as of Nov 7, 2026: price $54.99, calculated fair value $83.50 (+52%), Quality Score 73/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of EDU calculated?
We run New Oriental Education & Technology through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $83.50 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. New Oriental Education & Technology currently trades 34% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of New Oriental Education & Technology (EDU)?
The closing price on Nov 6, 2026 was $54.99. Our model-based fair value is $83.50, about +52% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with New Oriental Education & Technology right now?
The price is below even our cautious bear case ($58.45). The market is more pessimistic than our downside scenario. Solid quality (73/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($58.45 to $108.55) leaves room in how you read the outcome.
Where does the earnings growth of New Oriental Education & Technology (EDU) come from?
Earnings per share at New Oriental Education & Technology grew +5.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +13.8 %, EBIT margin −3.8 %, tax rate −1.9 %, residual (interest, one-offs) −1.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of New Oriental Education & Technology
How large is the market capitalisation of New Oriental Education & Technology (EDU)?
The market capitalisation of New Oriental Education & Technology is $8.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of New Oriental Education & Technology (EDU)?
The price-to-sales ratio of New Oriental Education & Technology is 1.45 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of New Oriental Education & Technology (EDU)?
Earnings per share at New Oriental Education & Technology are $3.20 (price ÷ EPS = P/E 17.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of New Oriental Education & Technology (EDU)?
The dividend yield of New Oriental Education & Technology is 3.6% (payout 58.8%, on adjusted earnings, reported 62.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of New Oriental Education & Technology (EDU)?
The net margin of New Oriental Education & Technology is 8.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of New Oriental Education & Technology (EDU)?
The return on equity (ROE) of New Oriental Education & Technology is 12.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of New Oriental Education & Technology (EDU)?
On an EBIT basis the return on assets of New Oriental Education & Technology is 0.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of New Oriental Education & Technology (EDU)?
The operating margin of New Oriental Education & Technology is 20.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at New Oriental Education & Technology (EDU)?
Revenue at New Oriental Education & Technology is growing +23.1% versus a year earlier (3y avg +23.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at New Oriental Education & Technology (EDU)?
Earnings per share at New Oriental Education & Technology are growing +13.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does New Oriental Education & Technology (EDU) hold?
New Oriental Education & Technology holds more cash than debt, $1.2B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
Free · no account needed
Watch New Oriental Education & Technology in the live analysis
One click puts New Oriental Education & Technology on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 7, 2026