New Oriental Valuation
| EDU Stock | USD 86.89 2.34 2.77% |
At this time, the firm appears to be overvalued. New Oriental Education secures a last-minute Real Value of $77.09 per share. The latest price of the firm is $86.89. Our model forecasts the value of New Oriental Education from analyzing the firm fundamentals such as Return On Equity of 0.088, profit margin of 0.09 %, and Current Valuation of 136.27 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting New Oriental's valuation include:
Price Book 3.741 | Enterprise Value 136.3 B | Enterprise Value Ebitda 23.8433 | Price Sales 4.1594 | Forward PE 23.8663 |
Overvalued
Today
Please note that New Oriental's price fluctuation is very steady at this time. Calculation of the real value of New Oriental Education is based on 3 months time horizon. Increasing New Oriental's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for New Oriental Education is useful when determining the fair value of the New stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of New Oriental. Since New Oriental is currently traded on the exchange, buyers and sellers on that exchange determine the market value of New Stock. However, New Oriental's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 86.89 | Real 77.09 | Target 67.22 | Hype 88.47 | Naive 86.6 |
The real value of New Stock, also known as its intrinsic value, is the underlying worth of New Oriental Education Company, which is reflected in its stock price. It is based on New Oriental's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of New Oriental's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence New Oriental's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of New Oriental Education helps investors to forecast how New stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of New Oriental more accurately as focusing exclusively on New Oriental's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use New Oriental's intrinsic value based on its ongoing forecasts of New Oriental's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against New Oriental's closest peers. When choosing an evaluation method for New Oriental Education, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
New Oriental Investments |
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New Valuation Drivers Correlation
Many accounts on the financial statements of New Oriental Education are highly interrelated and sometimes correlated. Consequently, when conducting New's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of New
Click cells to compare fundamentals
New Valuation Trend
Knowing New Oriental's actual value is paramount for traders to make sound investment determinations. New Oriental's real value is not only important for the investor to make better decisions but also for a more accurate overall view of New Oriental's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both New Oriental's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
New Market Cap
New Oriental Education is one of the top stocks in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 30.5 Billion. New Oriental totals roughly 14.58 Billion in market capitalization claiming about 48% of stocks in Consumer Discretionary industry.New Oriental Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining New Oriental's current stock value. Our valuation model uses many indicators to compare New Oriental value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across New Oriental competition to find correlations between indicators driving New Oriental's intrinsic value. More Info.New Oriental Education is rated # 2 in price to earning category among related companies. It is rated # 4 in price to book category among related companies fabricating about 0.03 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for New Oriental Education is roughly 30.25 . Price To Book Ratio is likely to drop to 1.92 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value New Oriental by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for New Oriental's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the New Oriental's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates New Oriental's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in New Oriental and how it compares across the competition.
About New Oriental Valuation
The stock valuation mechanism determines the current worth of New Oriental Education on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of New Oriental Education. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of New Oriental Education based exclusively on its fundamental and basic technical indicators. By analyzing New Oriental's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of New Oriental's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of New Oriental. We calculate exposure to New Oriental's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to New Oriental's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.8 B | 1.9 B | |
| Pretax Profit Margin | 0.12 | 0.15 | |
| Operating Profit Margin | 0.07 | 0.12 | |
| Net Profit Margin | 0.07 | 0.13 | |
| Gross Profit Margin | 0.61 | 0.63 |
New Oriental Quarterly Retained Earnings |
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8 Steps to conduct New Oriental's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates New Oriental's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct New Oriental's valuation analysis, follow these 8 steps:- Gather financial information: Obtain New Oriental's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine New Oriental's revenue streams: Identify New Oriental's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research New Oriental's industry and market trends, including the size of the market, growth rate, and competition.
- Establish New Oriental's growth potential: Evaluate New Oriental's management, business model, and growth potential.
- Determine New Oriental's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate New Oriental's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
New Oriental Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as New Oriental does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 168.6 M | |
| Quarterly Earnings Growth Y O Y | 1.577 | |
| Forward Price Earnings | 23.8663 |
New Oriental Current Valuation Indicators
Valuation refers to the process of determining the present value of New Oriental Education and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value New we look at many different elements of the entity such as New's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. New Oriental's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final New Oriental's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as New Oriental, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use New Oriental's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes New Oriental's worth.When determining whether New Oriental Education is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if New Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about New Oriental Education Stock. Highlighted below are key reports to facilitate an investment decision about New Oriental Education Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in New Oriental Education. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. Note that the New Oriental Education information on this page should be used as a complementary analysis to other New Oriental's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Complementary Tools for New Stock analysis
When running New Oriental's price analysis, check to measure New Oriental's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy New Oriental is operating at the current time. Most of New Oriental's value examination focuses on studying past and present price action to predict the probability of New Oriental's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move New Oriental's price. Additionally, you may evaluate how the addition of New Oriental to your portfolios can decrease your overall portfolio volatility.
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Is New Oriental's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of New Oriental. If investors know New will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about New Oriental listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.577 | Earnings Share 1.8 | Revenue Per Share 21.628 | Quarterly Revenue Growth 0.363 | Return On Assets 0.0324 |
The market value of New Oriental Education is measured differently than its book value, which is the value of New that is recorded on the company's balance sheet. Investors also form their own opinion of New Oriental's value that differs from its market value or its book value, called intrinsic value, which is New Oriental's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because New Oriental's market value can be influenced by many factors that don't directly affect New Oriental's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between New Oriental's value and its price as these two are different measures arrived at by different means. Investors typically determine if New Oriental is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Oriental's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.