New Oriental Stock Valuation

EDU -  USA Stock  

USD 2.36  0.17  7.76%

What would the acquisition value of New Oriental Education be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as New Oriental, is its stock price multiplied by the total number of shares outstanding, calculating New Oriental's enterprise value requires a different approach. It uses New Oriental's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
New Oriental Enterprise Value is comparatively stable at the moment as compared to the past year. New Oriental reported Enterprise Value of 22.34 Billion in 2020. Tangible Asset Value is likely to gain to about 8 B in 2021, whereas Free Cash Flow is likely to drop slightly above 536.9 M in 2021.
New Oriental Education secures a last-minute Real Value of $5.05 per share. The latest price of the firm is $2.36. Based on Macroaxis valuation methodology, the firm appears to be undervalued. Our model forecasts the value of New Oriental Education from analyzing the firm fundamentals such as Profit Margin of 10.18 %, return on equity of 7.30 %, and Current Valuation of 9.25 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.

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New Oriental Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as New Oriental's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
2.36
28th of July 2021
Share
Please note that New Oriental's price fluctuation is very risky 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 Oriental 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 Oriental 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.
5.05
Real Value
15.24
Upside
Estimating the potential upside or downside of New Oriental Education helps investors to forecast how New Oriental 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:
Earnings
Estimates (2)
LowProjected EPSHigh
0.260.280.29
Details
Hype
Prediction
LowEstimated ValueHigh
0.122.3812.57
Details
5 Analysts
Consensus
LowTarget PriceHigh
3.5013.2222.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. 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 look to relative valuation against New Oriental's closest peers. When choosing a valuation method New Oriental Education, make sure it is appropriate for the firm given its current financial situation and market classification. If more than one is valuation category is appropriate, we suggest using both methods to arrive at a better estimate.

New Oriental Investments

3.42 BillionShare

New Oriental Valuation Drivers Correlation

Many accounts on the financial statements of New Oriental Education are highly interrelated and sometimes correlated. Consequently, when conducting New Oriental'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 Oriental
Click cells to compare fundamentals

New Oriental Market Cap

New Oriental Education is rated # 2 in market capitalization category among related companies. Market capitalization of Education & Training Services industry is currently estimated at about 11.67 Billion. New Oriental totals roughly 3.49 Billion in market capitalization claiming about 30% of equities under Education & Training Services industry.
Capitalization  Valuation  Total debt  Revenue  Workforce

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 # 4 in beta category among related companies. It is rated # 5 in price to book category among related companies fabricating about  0.71  of Price to Book per Beta. The ratio of Beta to Price to Book for New Oriental Education is roughly  1.40 . Price to Book Value is likely to drop to 7.49 in 2021

About New Oriental Valuation

The equity 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 ReportedProjected for 2021
Gross Profit2.3 B2.5 B
Profit Margin 0.10  0.12 
New Oriental Education Technology Group Inc. provides private educational services under the New Oriental brand in the Peoples Republic of China. The company was founded in 1993 and is headquartered in Beijing, the Peoples Republic of China. New Oriental operates under Education Training Services classification in the United States and is traded on New York Stock Exchange. It employs 69438 people.

New Oriental Quarterly Enterprise Value

27.38 BillionShare

New Oriental Valuation Growth Rates

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.
Quick Ratio1.92
Earnings Quarterly Growth9.90%
Revenue Growth29.00%
Enterprise Value To Ebitda22.63
Earnings Growth3.10%
Enterprise Value To Revenue2.39

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 Oriental we look at many different elements of the entity such as New Oriental's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Continue to Investing Opportunities. 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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The market value of New Oriental Education is measured differently than its book value, which is the value of New Oriental 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 Education underlying business (such as 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 New Oriental value 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.