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Sunlands Technology Group (STG) Fair Value & Analysis

Consumer Defensive · US · Market cap $60.5M

ST Sunlands Technology Group logo Sunlands Technology Group STG · US
Price$3.40
Fair Value$4.35
Upside+28.0%
Quality81/100
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Weak Growth
Solidly profitable · 18.6% net margin
Low debt · generates free cash flow
Ranks above peers (9/10)
Wide moat 85/100
Evidence: High Range $3.01 – $9.10 Share as image

Fair value as of: Jul 7, 2026

From 24 valuation models · updated 34 days ago

Fair value updated Jul 7, 2026, revised from $268.08 to $4.35 (−98.4%) since Jun 24, 2026. Share price −11.0% over the past month.

A strong business, screening 28% undervalued on our models.

What matters now

  • The rarer combination: high quality (81/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The model range is unusually wide ($3.01 to $9.10). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

$14.90 $2.16 Fair Value $4.35 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 7, 2026.

How to read this chart

60‑month range $2.16 – $14.90 · fair‑value band $3.01 – $9.10 · the $3.40 price screens below the $4.35 fair value. Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

Sunlands Technology Group (STG) currently trades at $3.40, while our model-based Fair Value estimate is $4.35, implying the stock looks roughly 28.0% undervalued today. The Quality Score stands at 81/100 (high 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, Sunlands Technology Group generated revenue of $2.0B at a net margin of 18.6%. Revenue declined 9.6% year over year. It earns a return on equity of 44.1%. The balance sheet holds a net cash position of $438M. Fundamentals as of Jul 7, 2026

Our scenario range runs from $3.01 (bear case) to $9.10 (bull case); at $3.40, 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 77% below its 52-week high and 40% 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 28%, STG 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 $1.98 $2.44 $2.99 80
Residual Income $2.25 $3.28 $24.49 76
Rev-Margin DCF $2.23 $3.20 $4.32 74
All 24 models by family
DCF Models
FCF DCF $1.98 $2.52 $3.21 38
Owner Earnings $4.32 $5.83 $7.73 31
5Y Revenue Exit $2.23 $3.20 $4.44 39
5Y EBITDA Exit $3.59 $5.76 $8.32 41
5Y P/E Exit $4.58 $7.63 $10.87 38
10Y Revenue Exit $2.06 $2.83 $3.87 36
10Y EBITDA Exit $2.84 $4.35 $6.42 37
10Y P/E Exit $3.38 $5.47 $8.09 35
Earnings-Based
Graham-Dodd $2.77 $9.05 $12.09 54
Lynch FV $2.03 $2.90 $3.77 50
PEG = 1.0 $2.03 $2.90 $3.77 46
EPV $3.70 $4.07 $4.37 59
Multiples
P/E Multiple $6.71 $8.95 $11.19 63
P/S Multiple $2.02 $2.70 $3.37 58
P/B Multiple $3.16 $4.21 $5.27 55
EV/EBIT $7.32 $9.55 $11.77 53
EV/EBITDA $5.38 $6.95 $8.53 54
EV/Revenue $2.53 $3.34 $4.15 43
Asset-Based
NCAV (Graham) $0.5265 $0.7057 $1.05 50
Growth DCF
Growth DCF $1.98 $2.44 $2.99 80
Rev-Margin DCF $2.23 $3.20 $4.32 74
Economic Profit
Residual Income $2.25 $3.28 $24.49 76
ROIC Compounder $3.78 $4.24 $4.66 72
Growth Earnings
Growth-Adj P/E $5.62 $8.03 $10.44 68

Widest divergence: Growth Earnings ($8.03) versus Asset-Based ($0.7057). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $2.0B
Revenue growth (YoY) -9.6%
Net margin 18.6%
Return on equity 44.1%
Free cash flow $143M FY2025
P/E ratio 1.1
More key figures
Operating margin 22.0%
EPS (TTM) $4.04
EPS growth (YoY) +3.2%
Net cash $438M FY2025

Figures from reported company fundamentals · as of Jul 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 74 · Market factors (momentum, volatility) 14

Profitability 90
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 15
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 91
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

Sunlands Technology Group provides adult online education services and adult personal interest learning courses through online and mobile platforms in the People's Republic of China.

Full company description

Sunlands Technology Group provides adult online education services and adult personal interest learning courses through online and mobile platforms in the People's Republic of China. It offers adult online education and adult personal interest learning education through courses and educational content offerings, including interest, professional skills and professional certification preparation courses, and degree- or diploma-oriented post-secondary courses. The company also provides professional assistance and counseling services to help students make decisions that suit their learning needs and to formulate study plans throughout their enrollment in courses and exam preparation courses for exam-taking students. In addition, the company offers professional skills and interest courses, such as wealth management, voice acting, Chinese painting, and calligraphy; degree- or diploma-oriented post-secondary courses that consist of preparation courses for a state-administered exam for learners pursuing associate diplomas or bachelor's degrees, and other degree- or diploma-oriented post-secondary entrance exams, covering majors such as administrative management, Chinese language and literature, business management, law, public administration, computer information management, pre-school education, marketing, and English. Further, it provides professional certification preparation courses covering various industries and professions, such as accounting, human resources, and teaching, as well as technical and consultation services. The company was formerly known as Sunlands Online Education Group and changed its name to Sunlands Technology Group in August 2018. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sunlands Technology Group reported revenue of $2.0B in FY2025 versus $2.5B in FY2021, a compound −5.3%/yr. Reported net income was $366M in FY2025, compounding +13.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$2.0B
Latest YoY
+1.5%
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.
−4.6%
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.
−1.7%
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.
+28.9%
Revenue −5.3%/yr
FY21 $2.5B
FY22 $2.3B
FY23 $2.2B
FY24 $2.0B
FY25 $2.0B
Net income +13.7%/yr
FY21 $219M
FY22 $644M
FY23 $641M
FY24 $342M
FY25 $366M

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Cite: Fair Value Calculator (2026). "Sunlands Technology Group Fair Value". https://www.fairvalue-calculator.com/stock/STG

Peer Group

Education & Training Services · 148 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 81 · Top 25%
Fair Value upside +28% · Above median
Return on equity (TTM) 44% · Top 25%
Return on assets 14% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth -10% · Bottom 25%

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

P/E (TTM) 1.1× · Cheaper than 75% of peers
P/FCF 0.4× · 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 71 · sector 37
FUTURE 0 · sector 24
PAST 100 · sector 18
HEALTH 100 · sector 95
DIVIDEND 0 · 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 Jul 7, 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 ₹131.59 ₹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 Sunlands Technology Group (STG) overvalued or undervalued?
As of Jul 7, 2026, our model estimates a fair value of $4.35 versus a price of $3.40, about +28% (undervalued).
What is the fair value of STG?
Our model-based fair value for Sunlands Technology Group is $4.35 (as of Jul 7, 2026), built from audited fundamentals. The current price is $3.40.
What is the quality score of STG?
Sunlands Technology Group has a Quality Score of 81/100. 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 Sunlands Technology Group (STG)?
Sunlands Technology Group reported trailing-twelve-month revenue of about $2.0B (latest available figure, as of Jul 7, 2026).
What is the net profit margin of STG?
The net profit margin of Sunlands Technology Group is about 18.6%, meaning it keeps roughly 18.6% 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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