New Oriental Stock Valuation

EDU
 Stock
  

USD 23.97  1.19  4.73%   

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 Education secures a last-minute Real Value of $14.42 per share. The latest price of the firm is $23.97. At this time, the firm appears to be overvalued. Our model forecasts the value of New Oriental Education from analyzing the firm fundamentals such as Current Valuation of 317.59 M, return on equity of (27.70) %, and Profit Margin of (38.25) % 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.
  
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.
Overvalued
Today 23.97
Please note that New Oriental's price fluctuation is somewhat reliable 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.
14.41
Real Value
26.37
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:
Hype
Prediction
LowEstimated ValueHigh
19.8223.8127.80
Details
5 Analysts
Consensus
LowTarget PriceHigh
2.404.369.20
Details

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 one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  0.01  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for New Oriental Education is roughly  83.48 . 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.
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.

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 Ratio2.47
Revenue Growth-56.80%
Enterprise Value To Ebitda-0.42
Enterprise Value To Revenue0.10
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running New Oriental Education 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 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 Oriental 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.
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'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 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.