Gaotu Techedu Inc (GOTU) fair value: what the stock is really worth
As of Oct 13, 2026: fair value of Gaotu Techedu Inc $7.55, price $2.78, upside +171.6%, quality 59 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Gaotu Techedu Inc
GOTU · USClearly undervaluedStrong Fair Value upside, but quality is only moderate.
The stock costs 63% less than our calculation considers fair.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 4, 2026.
How to read this chart
60‑month range $0.6500 – $12.40 · fair‑value band $4.52 – $11.40 · the $2.78 price screens below the $7.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 4, 2026.
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Company profile
Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China.
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Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China. Its learning services include traditional learning services that cover academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography and political science; and non-academic tutoring services, including adolescent development, Cambridge English, international competitions and international examinations. It also offers college student and adult education services, comprising admission courses for entrance exams and interviews for postgraduate programs and civil service exams; exam preparation courses, such as IELTS and TOEFL; consulting services for those pursuing studies abroad, as well as English courses for improving language skills which includes grammar, vocabulary, and speaking; and professional courses for qualification exams, such as teacher certification. In addition, the company offers educational content products, including course outlines, courseware, practice exercises and lesson notes, and reference books, such as Chinese dictionaries and exam question compilations for the college entrance exam; and digitalized learning products, including reading apps for young learners, and AI-based writing assessment tools that offer instant feedback, as well as learning pen and tablet devices. It provides its learning offerings to learners across various age groups from primary school students to adults through online and offline courses, and AI-powered applications. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, China.
Stock analysis
Gaotu Techedu Inc DRC (GOTU) currently trades at $2.78, while our model-based Fair Value estimate is $7.55, implying the stock looks roughly 63.2% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $7.25 per share, and 6 of the 7 models we run sit above the $2.78 price.
Bear case: the Asset-Based group reads lowest at $1.01, and 1 of the 7 models stay below the price. Data coverage for this calculation is low.
Scenario range: $4.52 (bear) to $11.40 (bull), the price of $2.78 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 59/100 (solid quality), in the Consumer Defensive sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Gaotu Techedu Inc DRC reported revenue of 6.1B CNY in FY2025 versus 6.6B CNY in FY2021, a compound −1.6%/yr. Reported net income was −323M CNY in FY2025.
Key figures
Market cap $988M · P/S ratio 0.09 · EPS (TTM) $−0.2000 · Net margin −5.3% · Return on equity −25.1% · Return on assets (EBIT) −19.4% · Operating margin −9.0% · Revenue (TTM) 6.6B CNY.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 33 out of 100 (medium confidence).
What moves the price
The share trades about 14% below its 52-week high and 96% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 18% fair-value upside, at 172%, GOTU screens cheaper than that median.
Fair Value models
All 7 models by family
Quality Score breakdown
Of which business quality 57 · Market factors (momentum, volatility) 58
Revenue & earnings trend
Growth Forecast
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Compare Gaotu Techedu Inc DRC with another stock
Price, fair value, quality and upside side by side.
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 · 119 stocks
Valuation Multiplesvs Education & Training Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Consumer Discretionary sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Education & Training Services stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| TAL Education Group TAL | $12.86 | $32.66 | +154% | vs GOTU |
| Stride, Inc LRN | $84.43 | $171.72 | +103% | vs GOTU |
| New Oriental Education & Technology Group EDU | $57.38 | $83.50 | +46% | vs GOTU |
| Perdoceo Education Corporation PRDO | $33.73 | $41.01 | +22% | vs GOTU |
| Covista Inc CVSA | $128.87 | $151.99 | +18% | vs GOTU |
| Grand Canyon Education, Inc LOPE | $159.80 | $175.78 | +10% | vs GOTU |
| East Buy Holding 1797 | HK$26.10 | HK$28.71 | +10% | vs GOTU |
| Laureate Education, Inc LAUR | $39.47 | $40.60 | +3% | vs GOTU |
| McGraw Hill, Inc MH | $13.11 | $8.95 | −32% | vs GOTU |
| Physicswallah Limited PWL | ₹134.36 | ₹33.64 | −75% | vs GOTU |
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Key figures of Gaotu Techedu Inc DRC
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