China Online Education Group American depositary shares, each representing 15 Class A ordinary shares (COE) Company Bio
China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines. It operates online and mobile education platforms enable students to take one-on-one live interactive English lessons with international foreign teachers. The company was founded in 2011 and is headquartered in Beijing, the People's Republic of China.
COE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for China Online Education Group with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that China Online Education Group ranked in the 100th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 82019.33% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. The most interesting components of our discounted cash flow analysis for China Online Education Group ended up being:
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 2.71% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
China Online Education Group's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.51. This coverage rate is greater than that of just 5.47% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, China Online Education Group experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as COE, try DTEA, TANH, ELF, PRDO, and AKO.B.