Gaotu Techedu Inc (GOTU) Fair Value & Analysis
Consumer Defensive · US · Market cap $393M
Gaotu Techedu Inc
GOTU · US
Fair value as of: Jul 16, 2026
From 7 valuation models · updated today
Fair value updated Jul 16, 2026 — revised from $5.74 to $4.67 (−18.6%) since Jun 24, 2026. Share price +20.8% over the past month.
Price vs Fair Value (12 months)
12‑month range $1.42 – $3.99 · fair‑value band $3.57 – $5.78 · the $1.80 price screens below the $4.67 fair value. As of Jul 16, 2026.
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Gaotu Techedu Inc (GOTU) currently trades at $1.80, while our model-based Fair Value estimate is $4.67 — implying the stock looks roughly 159.4% undervalued today. We read business quality at 48/100 (below-average 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: low) — always confirm before acting.
Over the trailing twelve months, Gaotu Techedu Inc generated revenue of $6.3B at a net margin of -6.5%. Revenue grew 13.2% year over year. It earns a return on equity of -26.1%. The balance sheet holds a net cash position of $127M. Fundamentals as of Jul 16, 2026
Our scenario range runs from $3.57 (bear case) to $5.78 (bull case); at $1.80, the current price sits below that range. The share trades about 56% below its 52-week high and 29% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 9% fair-value upside — at 159%, GOTU screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jul 16, 2026. TTM = trailing twelve months.
About the company
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 …
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Gaotu Techedu Inc reported revenue of $6.1B in FY2025 versus $6.6B in FY2021, a compound −1.6%/yr. Reported net income was −$323M in FY2025.
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Similar stocks
10 more Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| New Oriental Education & Technology Group EDUN | 966.48 MXN | 895.77 MXN | -7% |
| TAL Education Group T1AL34 | R$4.84 | R$0.5800 | -88% |
| Laureate Education, Inc LAUR | $36.49 | $39.86 | +9% |
| Covista Inc CVSA | $124.45 | $150.42 | +21% |
| Stride, Inc LRN | $97.91 | $139.18 | +42% |
| Grand Canyon Education, Inc LOPE | $152.57 | $112.68 | -26% |
| Physicswallah Limited PWL | ₹130.16 | ₹14.81 | -89% |
| Universal Technical Institute, Inc UTI | $39.75 | $20.63 | -48% |
| McGraw Hill, Inc MH | $12.80 | $27.91 | +118% |
| Perdoceo Education Corporation PRDO | $35.22 | $61.71 | +75% |
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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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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.