EN DE
Check 35,000+ stocks against 26 valuation models and 37 quality factors
Data-driven stock valuation

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.

  1. Fair value above price? Yes
  2. Good quality? Yes
  3. Add to watchlist

Consumer Defensive · US · Based in China · ISIN US36257Y1091

GT Gaotu Techedu Inc logo Thin data Oct 4, 2026

Gaotu Techedu Inc

GOTU · US

Clearly undervaluedStrong Fair Value upside, but quality is only moderate.

The stock costs 63% less than our calculation considers fair.

Fair value $7.55 · Strongly undervalued (+171.6%)
Low debt
Generates free cash flow
Ranks above peers (7/11)
Quality 59/100
Weak Growth (revenue 5y −2.9 %/yr in CNY)
Loss-making · -5.0% net margin (TTM)
Narrow moat 13/100
Thin data

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$12.40 $0.6500 Fair Value $7.55 Jul 2021 Oct 2026

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.

Follow Gaotu Techedu Inc DRC in your weekly email

Every Wednesday you see whether Gaotu Techedu Inc DRC 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.

Which stocks are undervalued right now? Check free Discover now →

Company profile

Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China.

Show more

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.

Show more

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

Bear $4.52 Fair Value $7.55 Bull $11.40
Price $2.78 · Upside +171.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. 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.
Best data coverage
FCF DCF $5.10 $7.08 $12.97 75
Growth DCF $4.83 $7.76 $12.36 75
5Y Revenue Exit $4.18 $6.44 $11.17 68
All 7 models by family
DCF Models
FCF DCF $5.10 $7.08 $12.97 75
5Y Revenue Exit $4.18 $6.44 $11.17 68
10Y Revenue Exit $4.41 $8.18 $10.43 65
Multiples
EV/Revenue $3.50 $4.65 $5.80 54
Asset-Based
NCAV (Graham) $0.7500 $1.01 $1.50 54
Growth DCF
Growth DCF $4.83 $7.76 $12.36 75
Rev-Margin DCF $4.52 $7.25 $12.99 68

Open the full fair value analysis →

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 58

Profitability 35
Margins and returns on capital today
Quality Growth 89
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Financial strength 38
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
Near the 52-week high 50
Distance to the 52-week high (market factor)
New shares 100
Share count: buybacks or dilution?

Open the full quality analysis →

Revenue & earnings trend

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. 24/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+35.0%
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.
+35.0%
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.
−2.9%
Start year 2020 (pandemic)
Revenue growth 8 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.
+67.8%
Profit margin (trend) ⓘ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.
−24.6% (2020) → −8.2% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

Growth Forecast

Little optimism in the price
The price assumes more 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).
+4.0%
Yearly growth needed for the next five years to justify today's price.
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.
+12.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in CNY, China: IMF forecast 1.7% a year to 2030, 1.4% from 2016 to 2025) that is about +2.3% a year for the price and +10.2% for the forecasts.
Forecast 2026 (sales)+15.1%
Forecast 2027 (sales)+13.4%
Projected 2028 (sales)+12.0%
Projected 2029 (sales)+10.6%
Projected 2030 (sales)+9.2%

Watch GOTU, get fair value alerts →

Compare Gaotu Techedu Inc DRC 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 · 119 stocks

Beats the industry median on 7/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 59 · Above median
Fair Value upside +171.6% · Top 25%
Profitability
Return on assets −4.5% · Bottom 25%
Net margin (12 months) −5.0% · Bottom 25%
Operating margin (12 months) −9.0% · Bottom 25%
Growth and dividend
Revenue growth 20.2% · Above median
Balance sheet
Debt / equity 0.03× · Below median

Valuation Multiplesvs Education & Training Services median · lower = cheaper

P/B 0.79× · Cheaper than median
P/S (12 months) 0.15× · Cheapest 25%
Price / free cash flow 4.0× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 49
FUTURE (revenue growth)100 · sector 22
PAST (return on equity)0 · sector 28
HEALTH (low debt)99 · sector 95
DIVIDEND (yield)0 · sector 57

Context: sector, industry, market

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

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

Explore undervalued stocks

More undervalued Consumer Defensive stocks →

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

For bloggers & editors: embed code + live data

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). "Gaotu Techedu Inc DRC Fair Value". https://www.fairvalue-calculator.com/stock/GOTU

Frequently asked questions

Is Gaotu Techedu Inc (GOTU) overvalued or undervalued?
As of Oct 4, 2026, our model estimates a fair value of $7.55 versus a price of $2.78, about +172% upside (undervalued).
What is the fair value of GOTU?
Our model-based fair value for Gaotu Techedu Inc DRC is $7.55 (as of Oct 4, 2026), built from audited fundamentals. The current price: $2.78.
What is the quality score of GOTU?
Gaotu Techedu Inc DRC has a Quality Score of 59/100. 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 Gaotu Techedu Inc (GOTU)?
Our model-based price target is the fair value of $7.55 (as of Oct 4, 2026) from 7 valuation models. Cautious scenario $4.52, optimistic scenario $11.40. It is a calculation from audited fundamentals, not an analyst target.
What is the Gaotu Techedu Inc DRC stock forecast for 2026?
Our models put fair value at $7.55, about +172% upside versus a price of $2.78 (undervalued). Cautious scenario $4.52, optimistic scenario $11.40. The calculation is refreshed regularly with new filings.
What is the revenue of Gaotu Techedu Inc (GOTU)?
Gaotu Techedu Inc DRC reported trailing-twelve-month revenue of about 6.6B CNY (latest available figure, as of Oct 4, 2026).
What growth is priced into Gaotu Techedu Inc (GOTU)?
For today's price to be fair in a discounted-cash-flow model, Gaotu Techedu Inc DRC would have to grow free cash flow by +4.0 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -2.9 % per year. As of Oct 4, 2026.
What discount rate (WACC) does the fair value of GOTU use?
Our models discount Gaotu Techedu Inc DRC at 10.4 %: a base by market capitalisation (small), damped by beta 0.72, 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 Gaotu Techedu Inc DRC that is +4.0 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Gaotu Techedu Inc (GOTU) delivered so far?
Over the past 5 years revenue at Gaotu Techedu Inc DRC grew -2.9 % a year. The price currently implies +4.0 % per year free-cash-flow growth a 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 Gaotu Techedu Inc (GOTU) growing?
The median revenue growth in the sector is +4.4 % a year. That is the yardstick for the growth priced into Gaotu Techedu Inc DRC (+4.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Gaotu Techedu Inc (GOTU)?
The free-cash-flow yield on the price is 3.73 %: that much free cash flow Gaotu Techedu Inc DRC produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Gaotu Techedu Inc (GOTU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Gaotu Techedu Inc DRC it is $7.55 per share (as of Oct 4, 2026), against a price of $2.78. It is the blended result of 7 valuation models (cash flow, earnings, asset, dividend).
Is Gaotu Techedu Inc DRC stock overvalued or undervalued in 2026?
As of Oct 4, 2026, GOTU trades below its calculated fair value: price $2.78, fair value $7.55, a gap of about +172% (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 GOTU?
No. The price is what the market pays today ($2.78); the fair value is what the company's own numbers justify ($7.55). For Gaotu Techedu Inc DRC the two are $4.77 per share apart. That gap is exactly why we show both numbers side by side.
How much is Gaotu Techedu Inc DRC worth?
The market values Gaotu Techedu Inc DRC at about $988M (market capitalisation, as of Oct 4, 2026). Per share that is $2.78; our models calculate a fair value of $7.55 per share.
What do the bullish and bearish scenarios say about GOTU?
Our models span a range for Gaotu Techedu Inc DRC: cautious scenario $4.52, base $7.55, optimistic $11.40 per share (as of Oct 4, 2026, price $2.78). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Gaotu Techedu Inc (GOTU)?
Balance-sheet figures for Gaotu Techedu Inc DRC (as of Oct 4, 2026): return on equity −25.1%, debt of 0.03 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is GOTU from its 52-week high?
Gaotu Techedu Inc DRC trades at $2.78, about 14% below its 52-week high of $3.23 and 96% above the low of $1.42 (as of Oct 13, 2026). Distance from the high says nothing about value: that is what the fair value of $7.55 is for.
Which stocks are comparable to Gaotu Techedu Inc DRC?
From the same area (Consumer Defensive) we also value New Oriental Education & Technology Group, TAL Education Group, Laureate Education, Inc, Covista 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 Gaotu Techedu Inc DRC stock attractive at the current price?
The data as of Oct 4, 2026: price $2.78, calculated fair value $7.55 (+172%), Quality Score 59/100, from 7 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 GOTU calculated?
We run Gaotu Techedu Inc DRC through 7 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $7.55, 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 14.5 % above its aggregate fair value. Gaotu Techedu Inc DRC currently trades 63 % 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 Gaotu Techedu Inc (GOTU)?
The closing price on Oct 13, 2026 was $2.78. Our model-based fair value is $7.55, about +172% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Gaotu Techedu Inc DRC right now?
The price is below even our cautious bear case ($4.52). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($4.52 to $11.40) leaves room in how you read the outcome.

Key figures of Gaotu Techedu Inc DRC

How large is the market capitalisation of Gaotu Techedu Inc (GOTU)?
The market capitalisation of Gaotu Techedu Inc DRC is $988M. 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 Gaotu Techedu Inc (GOTU)?
The price-to-sales ratio of Gaotu Techedu Inc DRC is 0.09 (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 Gaotu Techedu Inc (GOTU)?
Earnings per share at Gaotu Techedu Inc DRC are $−0.2000. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Gaotu Techedu Inc (GOTU)?
The net margin of Gaotu Techedu Inc DRC is −5.3% (fiscal year 2025). 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 Gaotu Techedu Inc (GOTU)?
The return on equity (ROE) of Gaotu Techedu Inc DRC is −25.1% (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 Gaotu Techedu Inc (GOTU)?
On an EBIT basis the return on assets of Gaotu Techedu Inc DRC is −19.4% (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 Gaotu Techedu Inc (GOTU)?
The operating margin of Gaotu Techedu Inc DRC is −9.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Gaotu Techedu Inc (GOTU)?
Revenue at Gaotu Techedu Inc DRC is growing +20.2% versus a year earlier (3y avg +35.0%). 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 Gaotu Techedu Inc (GOTU)?
Earnings per share at Gaotu Techedu Inc DRC are growing −71.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Gaotu Techedu Inc (GOTU) hold?
Gaotu Techedu Inc DRC holds more cash than debt, 127M CNY net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
Free · no account needed

Watch Gaotu Techedu Inc DRC in the live analysis

One click puts Gaotu Techedu Inc DRC on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.