New Oriental Education & Technology EDU
ChinaConsumer Defensive · Education & Training ServicesUSD
73.62 USD (+28.5%)
20 analysts
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New Oriental Education & Technology is a leading provider of educational services in China, which has pivoted from academic tutoring to non-academic education, vocational training, and other segments following the 2021 regulatory ban.
Key points
from its scores- ✓Strong growth9.2
- ✓Very solid balance sheet7.7
- ✓Attractive valuation7.7
- !Risks to watch5.2
AI analysis
bottom line, main risk, context and newsThe valuation and clean balance sheet offer some margin of safety.
New Oriental shows a solid financial profile with net cash (Net Debt/EBITDA of -5.19), 23% revenue growth, and an attractive valuation (forward P/E of 11.37, FCF yield of 9.95%), although the 720.6% earnings growth is not sustainable. The main drag is regulatory risk in China, which justifies a governance discount.
The main risk is regulatory intervention by the Chinese government in the education sector, which in 2021 demonstrated its ability to eliminate the for-profit tutoring business model overnight.
Context and risks
New Oriental operates in China, where the private education sector has been subject to direct regulatory intervention (the 2021 ban on for-profit tutoring). Although the company has pivoted towards non-academic education and other segments, the risk of the government changing the rules again remains high and is specific to its jurisdiction.
Is New Oriental Education & Technology stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 24% below the Consumer Defensive median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 19.1 | 19.8 | −3% |
| EV / EBITDA | 6.0 | 10.8 | −44% |
| Price / book | 2.2 | 2.7 | −18% |
| Price / sales | 1.6 | 1.2 | +27% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.7 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 73.62 USD, +28.5% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.7 (sector 5.5), Growth 9.2 (sector 5.3).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 19.1
- Forward P/E
- 11.4
- EV / EBITDA
- 6.0
- Price / book
- 2.2
- Price / sales
- 1.6
- PEG
- 0.99
- Market cap
- 8.9B USD
- Enterprise value
- 5.0B USD
Profitability
- ROE
- 12.5%
- ROA
- 4.8%
- ROIC (approx.)
- 6.6%
- Gross margin
- 54.6%
- Operating margin
- 5.6%
- Net margin
- 8.4%
- Free cash flow
- 884.1M USD
- FCF yield
- 10.0%
- Cash conversion
- 108%
Solvency
- Total debt
- 848.8M USD
- Net debt
- −4.3B USD
- Cash
- 5.1B USD
- EBITDA
- 822.0M USD
- Net debt / EBITDA
- −5.19
- Debt / equity
- 19.63
- Current ratio
- 1.50
- Quick ratio
- 1.38
Growth
- Revenue growth
- +23.0%
- Earnings growth
- +720.6%
- EPS (TTM)
- 3.00 USD
- EPS (forward)
- 5.04 USD
Dividend
- Dividend yield
- 2.1%
- Payout
- 40.0%
Risk and market
- Beta
- 0.18
- Analyst consensus
- Buy (20)
- Target price
- 73.62 USD
- 52-week range
- 44.25 – 64.97
Recent news
All EDU news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about New Oriental Education & Technology
Is New Oriental Education & Technology stock cheap or expensive?
On P/E and EV / EBITDA, it trades 24% below the Consumer Defensive median on average. Valuation score: 7.7 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 73.62 USD, +28.5% versus the price. This is not investment advice.
What score does New Oriental Education & Technology get on MeridIAn Screener?
It scores 6.9 out of 10, rank 251 of 2,130 (better than 86% of the companies analysed). Its strongest category is Growth (9.2) and its weakest, Risk & Context (5.2). Analysis of 08/10/2026.
What is New Oriental Education & Technology's P/E ratio?
Its P/E is 19.1: the share price equals 19.1 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 11.4.
How much is New Oriental Education & Technology worth on the stock market?
Its market capitalisation is 8.9B USD and its enterprise value, debt included, is 5.0B USD.
How much debt does New Oriental Education & Technology have?
It has more cash than debt: net cash of 4.3B USD.
Does New Oriental Education & Technology pay a dividend?
Yes: its dividend yield is 2.09% and it pays out 40% of its earnings.
How has New Oriental Education & Technology stock performed over the last year?
It has risen 12.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 44.25 and 64.97 USD. Past performance does not guarantee future results.
What do analysts think of New Oriental Education & Technology?
20 analysts cover it; their average recommendation is “Buy” and their average target is 73.62 USD (+28.5% versus the price). It is an estimate, not market data.