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China Gingko Education Group Company Ltd (1851) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$2.9B

CG China Gingko Education Group Company Ltd 1851 · HK
PriceHK$5.09
Fair ValueHK$6.28
Upside+23.4%
Quality65/100
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Expensive Growth
Highly profitable · 40.6% net margin
Low debt · generates free cash flow
Ranks above peers (8/13)
Wide moat 76/100
Evidence: High Range HK$4.01 – HK$7.82 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$6.42 to HK$6.28 (−2.2%) since Aug 5, 2026. Share price −19.8% over the past month.

A solid business, screening 23% undervalued on our models.

What matters now

  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$4.01 to HK$7.82) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$7.98 HK$0.5300 Fair Value HK$6.28 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.5300 – HK$7.98 · fair‑value band HK$4.01 – HK$7.82 · the HK$5.09 price screens below the HK$6.28 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Gingko Education Group Company Ltd (1851) currently trades at HK$5.09, while our model-based Fair Value estimate is HK$6.28, implying the stock looks roughly 23.4% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China Gingko Education Group Company Ltd generated revenue of HK$401M at a net margin of 40.6%. Revenue grew 12.7% year over year. It earns a return on equity of 16.0%. The balance sheet holds a net cash position of HK$63.0M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$4.01 (bear case) to HK$7.82 (bull case); at HK$5.09, 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 38% below its 52-week high and 310% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 12% fair-value upside, at 23%, 1851 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model 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. Evidence
Highest evidence
Growth DCF HK$2.96 HK$4.84 HK$7.87 80
Rev-Margin DCF HK$1.62 HK$2.27 HK$3.13 74
ROIC Compounder HK$3.35 HK$4.40 HK$5.79 72
All 24 models by family
DCF Models
FCF DCF HK$2.99 HK$5.06 HK$8.53 38
Owner Earnings HK$3.35 HK$5.70 HK$9.63 31
5Y Revenue Exit HK$1.62 HK$2.25 HK$3.05 39
5Y EBITDA Exit HK$3.61 HK$6.35 HK$9.79 41
5Y P/E Exit HK$4.46 HK$8.10 HK$12.29 38
10Y Revenue Exit HK$2.05 HK$2.80 HK$3.85 36
10Y EBITDA Exit HK$3.36 HK$5.73 HK$9.36 37
10Y P/E Exit HK$3.91 HK$6.99 HK$11.40 35
Earnings-Based
Graham-Dodd HK$2.21 HK$10.21 HK$14.02 54
Lynch FV HK$2.69 HK$3.84 HK$4.99 50
PEG = 1.0 HK$2.69 HK$3.84 HK$4.99 46
EPV HK$3.05 HK$3.49 HK$3.87 59
Multiples
P/E Multiple HK$5.36 HK$7.15 HK$8.94 63
P/S Multiple HK$0.7200 HK$0.9600 HK$1.20 58
P/B Multiple HK$4.15 HK$5.53 HK$6.91 55
EV/EBIT HK$4.86 HK$6.39 HK$7.91 53
EV/EBITDA HK$4.24 HK$5.56 HK$6.89 54
EV/Revenue HK$0.9400 HK$1.23 HK$1.52 43
Asset-Based
NCAV (Graham) HK$1.10 HK$1.48 HK$2.20 50
Growth DCF
Growth DCF HK$2.96 HK$4.84 HK$7.87 80
Rev-Margin DCF HK$1.62 HK$2.27 HK$3.13 74
Economic Profit
Residual Income HK$2.16 HK$2.76 HK$6.92 61
ROIC Compounder HK$3.35 HK$4.40 HK$5.79 72
Growth Earnings
Growth-Adj P/E HK$4.41 HK$6.30 HK$8.19 68

Widest divergence: Growth Earnings (HK$6.30) versus Asset-Based (HK$1.48). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$401M
Revenue growth (YoY) +12.7%
Net margin 40.6%
Return on equity 16.0%
Free cash flow HK$111M FY2025
P/E ratio 15.5 as of Jul 2, 2026
More key figures
Operating margin 35.8%
EPS (TTM) HK$0.2000
EPS growth (YoY) +33.7%
Net cash HK$63.0M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 65 · Market factors (momentum, volatility) 62

Profitability 51
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 26
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

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.

About the company

China Gingko Education Group Company Limited, an investment holding company, provides private higher education services in the People's Republic of China. The company offers bachelor's degree and junior college diploma program through Gingko College of Hospitality Management.

Full company description

China Gingko Education Group Company Limited, an investment holding company, provides private higher education services in the People's Republic of China. The company offers bachelor's degree and junior college diploma program through Gingko College of Hospitality Management. It is also involved in the hotel business; provision of vocational training, education consultancy, and finance and asset management services; and operates training school. China Gingko Education Group Company Limited was founded in 2002 and is headquartered in Chengdu, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Gingko Education Group Company Ltd reported revenue of HK$401M in FY2025 versus HK$227M in FY2021, a compound +15.3%/yr. Reported net income was HK$163M in FY2025, compounding +43.2%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$401M
Latest YoY
+7.5%
Avg. growth/yr (3Y) 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.
+11.9%
Avg. growth/yr (5Y) 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.
+17.8%
Avg. growth/yr (10Y) 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.
+12.7%
Revenue +15.3%/yr
FY21 HK$227M
FY22 HK$286M
FY23 HK$355M
FY24 HK$373M
FY25 HK$401M
Net income +43.2%/yr
FY21 HK$38.7M
FY22 HK$85.0M
FY23 HK$148M
FY24 HK$153M
FY25 HK$163M
Character of growth · EPS growth decomposed (2015-2025) +17.8 % p.a.
Revenue per share +13.6 pp

of which total revenue +13.6 pp · buybacks/dilution +0.0 pp

EBIT margin +4.4 pp
Tax rate +0.0 pp
Residual (interest, one-offs) −0.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Gingko Education Group Company Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1851

Peer Group

Education & Training Services · 149 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.

Quality Score 65 · Top 25%
Fair Value upside +23% · Above median
Return on equity (TTM) 16% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 41% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth 13% · Above median
Debt / equity 0.10× · Lower than median

Valuation Multiples vs Education & Training Services median · lower = cheaper

P/E (TTM) 15.5× · Pricier than median
P/B 2.67× · Pricier than 75% of peers
P/S (TTM) 7.35× · Pricier than 75% of peers
P/FCF 3.4× · Pricier than median
EV/EBITDA 12.8× · Pricier than 75% of peers

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.

VALUE 65 · sector 37
FUTURE 64 · sector 22
PAST 64 · sector 19
HEALTH 95 · sector 95
DIVIDEND 0 · sector 74

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
New Oriental Education & Technology Group EDUN 966.48 MXN 875.84 MXN -9%
TAL Education Group TAL $11.87 $15.60 +31%
Laureate Education, Inc LAUR $36.99 $41.45 +12%
Physicswallah Limited PWL ₹123.90 ₹14.81 -88%
Grand Canyon Education, Inc LOPE $142.06 $152.01 +7%
Covista Inc CVSA $128.22 $135.45 +6%
Stride, Inc LRN $78.59 $139.45 +77%
Universal Technical Institute, Inc UTI $25.64 $20.98 -18%
Perdoceo Education Corporation PRDO $31.24 $40.65 +30%
Strategic Education, Inc STRA $79.98 $105.48 +32%

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Frequently asked questions

Is China Gingko Education Group Company Ltd (1851) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$6.28 versus a price of HK$5.09, about +23% (undervalued).
What is the fair value of 1851?
Our model-based fair value for China Gingko Education Group Company Ltd is HK$6.28 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$5.09.
What is the quality score of 1851?
China Gingko Education Group Company Ltd has a Quality Score of 65/100. 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 revenue of China Gingko Education Group Company Ltd (1851)?
China Gingko Education Group Company Ltd reported trailing-twelve-month revenue of about HK$401M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1851?
The net profit margin of China Gingko Education Group Company Ltd is about 40.6%, meaning it keeps roughly 40.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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