New Oriental Education & Technology Group, Inc. Sponsored ADR representing 1 Ordinary Share (Cayman Islands) (EDU) Company Bio
New Oriental Education & Technology Group is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. The company was founded in 1993 and is based in Beijing, China.
EDU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EDU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that New Oriental Education & Technology Group Inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for EDU, they are:
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 3.73% of the free cash flow producing stocks we're observing.
EDU's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 61.96% of tickers in our DCF set.
As a business, New Oriental Education & Technology Group Inc experienced a tax rate of about 107% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 98.55% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HRL, K, KMB, EL, and KOF can be thought of as valuation peers to EDU, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
In this article we will take a look at whether hedge funds think New Oriental Education & Technology Group Inc. (NYSE:EDU) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert […]
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