Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
New Oriental Education & Technology Group (EDU) is back in focus after releasing fourth quarter and full year results, issuing revenue guidance for fiscal 2027, and outlining fresh shareholder return plans.
See our latest analysis for New Oriental Education & Technology Group.
The latest earnings, new revenue guidance and fresh shareholder return plans from New Oriental Education & Technology Group have coincided with strong recent momentum, with a 1 month share price return of 26.8% and a 1 year total shareholder return of 35.0% supporting a much larger 5 year total shareholder return of 188.0% from a last close of $58.58.
If the recent move in New Oriental Education & Technology Group has you thinking about what else is attracting attention, this could be a good moment to uncover 18 top founder-led companies
After that sharp move and with a richer mix of dividends and buybacks on the table, the question now is whether New Oriental Education & Technology Group still offers an appealing balance of risk and reward at around $58.58.
Against the last close of $58.58, the most followed narrative for New Oriental Education & Technology Group pegs fair value at $70.80, using a 7.75% discount rate and detailed long term earnings assumptions.
Strong momentum and high year-over-year growth in new non-academic tutoring and AI-powered learning products reflects growing consumer demand for enrichment and personalized education, positioning the company to benefit from continued societal prioritization of premium educational services. This should support long-term revenue growth and improve blended margins due to scale and higher retention.
Want to understand why this narrative points to a higher fair value than today's price. It leans heavily on compounding revenue, fatter margins, and a richer future earnings multiple. Curious which specific growth path and profitability mix sit behind that story.
Result: Fair Value of $70.80 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, New Oriental Education & Technology Group still faces pressure from tighter regulation in some segments, as well as tougher competition that could challenge margins and growth expectations.
Find out about the key risks to this New Oriental Education & Technology Group narrative.
The first narrative points to New Oriental Education & Technology Group trading below a modeled fair value. Yet on a simple P/E basis the stock looks expensive at 22.2x compared with 17.2x for the US Consumer Services industry, 16x for peers, and a fair ratio of 19.9x. That kind of premium can mean the market is already baking in a lot of good news. The key question is whether you think New Oriental's future justifies paying more than both its peers and its own fair ratio.
See what the numbers say about this price — find out in our valuation breakdown.
If this mix of optimism and caution around New Oriental Education & Technology Group resonates with you, now is a good time to review the data yourself and form an independent view. To see which potential upsides analysts are watching most closely, start with the 4 key rewards.
If New Oriental Education & Technology Group has sharpened your focus, do not stop here. Use this momentum to broaden your watchlist with other carefully filtered opportunities.
Target high yield potential by scanning for companies that meet your income goals through the 9 dividend fortresses.
Hunt for quality at a reasonable price by reviewing companies highlighted in the screener containing 21 high quality undiscovered gems.
Prioritize resilience by focusing on companies surfaced by the 85 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EDU.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]