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China Beststudy Education Group (3978) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$2.4B

CB China Beststudy Education Group 3978 · HK
PriceHK$3.15
Fair ValueHK$9.10
Upside+189.4%
Quality62/100
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Healthy Growth
Solidly profitable · 15.8% net margin
Low debt · generates free cash flow
7.42% dividend yield
Ranks above peers (12/14)
Wide moat 78/100
Evidence: High Range HK$6.82 – HK$15.88 Share as image

Fair value as of: Aug 6, 2026

From 26 valuation models · updated today

Fair value updated Aug 6, 2026, revised from HK$9.04 to HK$9.10 (+0.7%) since Jul 2, 2026. Share price −0.8% over the past month.

A solid business, screening 189% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$6.82). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$6.82 to HK$15.88) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$5.44 HK$0.1747 Fair Value HK$9.10 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range HK$0.1747 – HK$5.44 · fair‑value band HK$6.82 – HK$15.88 · the HK$3.15 price screens below the HK$9.10 fair value. Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

China Beststudy Education Group (3978) currently trades at HK$3.15, while our model-based Fair Value estimate is HK$9.10, implying the stock looks roughly 189.4% undervalued today. We read business quality at 62/100 (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 Beststudy Education Group generated revenue of HK$1.9B at a net margin of 15.8%. Revenue grew 25.8% year over year. It earns a return on equity of 40.4%. The balance sheet holds a net cash position of HK$561M. Fundamentals as of Aug 6, 2026

Our scenario range runs from HK$6.82 (bear case) to HK$15.88 (bull case); at HK$3.15, the current price sits below that range. The share trades about 44% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 17% fair-value upside, at 189%, 3978 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 BearBaseBull Evidence
Highest evidence
Growth DCF HK$9.54 HK$16.65 HK$30.19 80
Residual Income HK$2.25 HK$2.87 HK$16.41 76
Rev-Margin DCF HK$6.60 HK$11.46 HK$18.85 74
All 26 models by family
DCF Models
FCF DCF HK$10.04 HK$15.28 HK$30.81 38
Owner Earnings HK$7.01 HK$14.26 HK$28.90 31
5Y Revenue Exit HK$6.60 HK$10.46 HK$18.05 39
5Y EBITDA Exit HK$7.94 HK$13.29 HK$23.24 41
5Y P/E Exit HK$7.39 HK$13.61 HK$21.64 38
10Y Revenue Exit HK$7.45 HK$13.12 HK$18.35 36
10Y EBITDA Exit HK$8.54 HK$15.70 HK$28.78 37
10Y P/E Exit HK$8.16 HK$14.64 HK$25.76 35
Earnings-Based
Graham-Dodd HK$2.42 HK$16.87 HK$23.68 54
Lynch FV HK$5.41 HK$7.72 HK$10.04 50
PEG = 1.0 HK$5.41 HK$7.72 HK$10.04 46
EPV HK$4.43 HK$4.96 HK$5.42 59
Dividend Discount
Gordon GGM HK$1.76 HK$3.50 HK$5.30 70
DDM Multi-Stage HK$1.76 HK$3.03 HK$3.70 61
Multiples
P/E Multiple HK$5.34 HK$7.12 HK$8.90 63
P/S Multiple HK$4.21 HK$5.62 HK$7.02 58
P/B Multiple HK$2.22 HK$2.96 HK$3.69 55
EV/EBIT HK$7.30 HK$9.38 HK$11.46 53
EV/EBITDA HK$7.17 HK$9.21 HK$11.25 54
EV/Revenue HK$4.99 HK$6.68 HK$8.36 43
Asset-Based
NCAV (Graham) HK$0.4900 HK$0.6600 HK$0.9900 50
Growth DCF
Growth DCF HK$9.54 HK$16.65 HK$30.19 80
Rev-Margin DCF HK$6.60 HK$11.46 HK$18.85 74
Economic Profit
Residual Income HK$2.25 HK$2.87 HK$16.41 76
ROIC Compounder HK$4.43 HK$4.96 HK$5.42 72
Growth Earnings
Growth-Adj P/E HK$7.07 HK$10.10 HK$13.14 68

Widest divergence: DCF Models (HK$13.61) versus Asset-Based (HK$0.6600). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$1.9B
Revenue growth (YoY) +25.8%
Net margin 15.8%
Return on equity 40.4%
Free cash flow HK$492M FY2025
P/E ratio 6.4
More key figures
Operating margin 20.8%
EPS (TTM) HK$0.2000
Dividend yield 7.4%
EPS growth (YoY) +4.7%
Net cash HK$561M FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 74 · Market factors (momentum, volatility) 37

Profitability 75
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 95
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 27
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 60
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 Beststudy Education Group provides after-school education services for K-12 student groups in China. The company provides education related courses, such as full-time test preparation business, talent education, after-school tutoring program, vocational education, and other activities.

Full company description

China Beststudy Education Group provides after-school education services for K-12 student groups in China. The company provides education related courses, such as full-time test preparation business, talent education, after-school tutoring program, vocational education, and other activities. It is also involved in provision of management consultancy services; publicity services and advertising; internet information services; provision of technical support and development services; and investment activities. China Beststudy Education Group was founded in 1997 and is headquartered in Guangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Beststudy Education Group reported revenue of HK$1.9B in FY2025 versus HK$1.9B in FY2021, a compound +0.1%/yr. Reported net income was HK$301M in FY2025.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$1.9B
Latest YoY
+72.8%
Avg. growth/yr (3Y)
+57.1%
Avg. growth/yr (5Y)
+2.4%
Avg. growth/yr (10Y)
+9.6%
Revenue +0.1%/yr
FY21 HK$1.9B
FY22 HK$491M
FY23 HK$489M
FY24 HK$1.1B
FY25 HK$1.9B
Net income
FY21 −HK$325M
FY22 HK$56.3M
FY23 HK$91.2M
FY24 HK$192M
FY25 HK$301M

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Cite: Fair Value Calculator (2026). "China Beststudy Education Group Fair Value". https://www.fairvalue-calculator.com/stock/3978

Peer Group

Education & Training Services · 150 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 62 · Top 25%
Fair Value upside +189% · Top 25%
Return on equity (TTM) 40% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 16% · Above median
Operating margin (TTM) 21% · Above median
Revenue growth 26% · Top 25%
Dividend yield (TTM) 7.4% · Top 25%

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

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/B 2.92× · Pricier than 75% of peers
P/S (TTM) 1.28× · Pricier than median
P/FCF 0.6× · Cheaper than median
EV/EBITDA 3.7× · Cheaper than median

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 100 · sector 36
FUTURE 100 · sector 24
PAST 100 · sector 18
HEALTH 100 · sector 95
DIVIDEND 100 · sector 66

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 6, 2026).

Stock Price Fair Value vs Fair Value
New Oriental Education & Technology Group EDUN 966.48 MXN 897.37 MXN -7%
TAL Education Group TAL $10.24 $15.60 +52%
Laureate Education, Inc LAUR $36.45 $41.45 +14%
Physicswallah Limited PWL ₹130.16 ₹14.81 -89%
Grand Canyon Education, Inc LOPE $149.00 $152.01 +2%
Covista Inc CVSA $116.22 $135.45 +17%
Stride, Inc LRN $83.39 $139.45 +67%
Universal Technical Institute, Inc UTI $40.33 $21.35 -47%
Perdoceo Education Corporation PRDO $31.66 $41.45 +31%
Strategic Education, Inc STRA $84.18 $105.48 +25%

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Frequently asked questions

Is China Beststudy Education Group (3978) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of HK$9.10 versus a price of HK$3.15, about +189% (undervalued).
What is the fair value of 3978?
Our model-based fair value for China Beststudy Education Group is HK$9.10 (as of Aug 6, 2026), built from audited fundamentals. The current price is HK$3.15.
What is the quality score of 3978?
China Beststudy Education Group has a Quality Score of 62/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of China Beststudy Education Group (3978)?
China Beststudy Education Group reported trailing-twelve-month revenue of about HK$1.9B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 3978?
The net profit margin of China Beststudy Education Group is about 15.8%, meaning it keeps roughly 15.8% of revenue as net income. Based on the latest reported figures.
Does China Beststudy Education Group pay a dividend?
China Beststudy Education Group currently shows a dividend yield of about 7.42% relative to its recent price (as of Aug 6, 2026).

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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