Latest Ratios: P/E Ratio 24.4x · EV/EBITDA 15.1x · ROE 9.3%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.9B | $7.7B | $13.3B | $6.3B | $2.2B | $16.9B | $19.1B | $13.6B | $15.8B | $11.3B | $6.6B |
| Enterprise Value | $8.1B | $6.9B | $12.6B | $5.1B | $1.7B | $17.4B | $19.8B | $12.6B | $14.8B | $10.7B | $5.9B |
| P/E Ratio → | 24.38 | 20.59 | 44.41 | 37.67 | — | 51.15 | 46.14 | 57.10 | 52.35 | 42.16 | 30.18 |
| P/S Ratio | 1.81 | 1.57 | 3.09 | 2.12 | 0.71 | 3.95 | 5.35 | 4.40 | 6.44 | 6.29 | 4.50 |
| P/B Ratio | 2.30 | 1.94 | 3.30 | 1.66 | 0.58 | 3.37 | 6.67 | 5.39 | 7.12 | 6.58 | 4.64 |
| P/FCF | 13.92 | 12.04 | 15.90 | 7.67 | — | 24.36 | 38.67 | 25.76 | 28.09 | 22.10 | 14.66 |
| P/OCF | 9.90 | 8.56 | 11.89 | 6.54 | — | 14.95 | 23.79 | 16.91 | 20.19 | 18.32 | 12.84 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.40 | 2.93 | 1.72 | 0.56 | 4.08 | 5.53 | 4.06 | 6.04 | 5.94 | 4.02 |
| EV / EBITDA | 15.08 | 12.83 | 27.59 | 16.45 | — | 50.22 | 36.02 | 29.96 | 43.26 | 33.65 | 24.03 |
| EV / EBIT | 18.84 | 14.05 | 28.99 | 17.03 | — | 54.24 | 40.21 | 39.57 | 41.42 | 32.30 | 30.45 |
| EV / FCF | — | 10.77 | 15.03 | 6.21 | — | 25.15 | 40.01 | 23.76 | 26.34 | 20.85 | 13.10 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.4% | 55.4% | 52.5% | 53.0% | 43.5% | 52.4% | 55.6% | 55.6% | 56.5% | 58.3% | 58.4% |
| Operating Margin | 8.7% | 8.7% | 8.1% | 6.3% | -31.6% | 2.7% | 11.1% | 9.9% | 10.7% | 14.6% | 13.4% |
| Net Profit Margin | 7.6% | 7.6% | 7.2% | 5.9% | -38.2% | 7.8% | 11.5% | 7.7% | 12.1% | 15.3% | 15.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.3% | 9.3% | 7.9% | 4.7% | -27.0% | 8.5% | 15.3% | 10.0% | 15.1% | 17.4% | 16.9% |
| ROA | 4.9% | 4.9% | 4.4% | 2.9% | -14.7% | 4.0% | 7.4% | 5.5% | 8.6% | 10.4% | 10.4% |
| ROIC | 9.9% | 9.9% | 8.9% | 4.8% | -16.6% | 1.9% | 12.6% | 18.8% | 17.1% | 21.8% | 21.0% |
| ROCE | 9.5% | 9.5% | 8.1% | 4.5% | -17.9% | 2.2% | 11.9% | 12.6% | 13.3% | 16.6% | 14.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.16 | 0.12 | 0.18 | 0.43 | 0.55 | 0.04 | — | — | — |
| Debt / EBITDA | 1.50 | 1.50 | 1.45 | 1.47 | — | 6.22 | 2.87 | 0.23 | — | — | — |
| Net Debt / Equity | — | -0.20 | -0.18 | -0.32 | -0.12 | 0.11 | 0.23 | -0.42 | -0.44 | -0.37 | -0.49 |
| Net Debt / EBITDA | -1.51 | -1.51 | -1.59 | -3.85 | — | 1.58 | 1.21 | -2.53 | -2.88 | -2.02 | -2.87 |
| Debt / FCF | — | -1.27 | -0.87 | -1.45 | — | 0.79 | 1.34 | -2.01 | -1.75 | -1.25 | -1.56 |
| Interest Coverage | 1570.90 | 1570.90 | 1460.42 | 427.35 | -253.94 | 47.68 | 106.43 | 196.57 | — | — | — |
Net cash position: cash ($1.6B) exceeds total debt ($804M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.58 | 1.58 | 1.80 | 1.96 | 2.62 | 1.89 | 1.52 | 1.73 | 1.68 | 1.93 | 2.04 |
| Quick Ratio | 1.55 | 1.55 | 1.76 | 1.94 | 2.60 | 1.88 | 1.50 | 1.71 | 1.66 | 1.91 | 2.01 |
| Cash Ratio | 1.39 | 1.39 | 1.59 | 1.78 | 2.45 | 1.80 | 1.42 | 1.59 | 1.55 | 1.80 | 1.89 |
| Asset Turnover | — | 0.63 | 0.57 | 0.47 | 0.51 | 0.42 | 0.55 | 0.67 | 0.62 | 0.62 | 0.63 |
| Inventory Turnover | 26.99 | 26.99 | 22.10 | 26.75 | 62.82 | 65.34 | 50.72 | 47.38 | 26.53 | 23.61 | 22.50 |
| Days Sales Outstanding | — | 14.14 | 16.40 | 16.65 | 14.75 | 10.11 | 0.43 | 0.39 | 0.47 | 0.68 | 0.93 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.3% | — | — | — | — | — | — | 0.5% | — | 0.9% |
| Payout Ratio | 26.4% | 26.4% | — | — | — | — | — | — | 24.0% | — | 27.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.9% | 2.3% | 2.7% | — | 2.0% | 2.2% | 1.8% | 1.9% | 2.4% | 3.3% |
| FCF Yield | 7.2% | 8.3% | 6.3% | 13.0% | — | 4.1% | 2.6% | 3.9% | 3.6% | 4.5% | 6.8% |
| Buyback Yield | 5.0% | 5.8% | 0.5% | 3.0% | 0.0% | 0.0% | 0.0% | 0.4% | 0.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 6.1% | 7.1% | 0.5% | 3.0% | 0.0% | 0.0% | 0.0% | 0.4% | 1.0% | 0.0% | 0.9% |
| Shares Outstanding | — | $162M | $167M | $169M | $170M | $165M | $160M | $159M | $159M | $158M | $157M |
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying EDU stock.
New Oriental Education & Technology Group Inc.'s current P/E ratio is 24.4x. The historical average is 39.6x. This places it at the 17th percentile of its historical range.
New Oriental Education & Technology Group Inc.'s current EV/EBITDA is 15.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.1x.
New Oriental Education & Technology Group Inc.'s return on equity (ROE) is 9.3%. The historical average is 13.9%.
Based on historical data, New Oriental Education & Technology Group Inc. is trading at a P/E of 24.4x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
New Oriental Education & Technology Group Inc.'s current dividend yield is 1.08% with a payout ratio of 26.4%.
New Oriental Education & Technology Group Inc. has 55.4% gross margin and 8.7% operating margin.
New Oriental Education & Technology Group Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Erratic cash conversion and margin volatility
Premium Valuation Reflects Growth Repricing
EDU trades at a forward P/E of 16.54 and EV/EBITDA of 9.46, a significant premium to peers like TAL (P/E 4.25), suggesting the market is pricing in a successful business model pivot and growth reacceleration.
The valuation premium appears justified by the company's 23.2% revenue growth acceleration and a return to positive operating margins, contrasting sharply with peers like GOTU and COE which remain unprofitable. However, the P/E compression from a trailing 25.09 to a forward 16.54 implies the market expects significant earnings growth, which may be vulnerable if the current SG&A spending surge does not translate into sustainable operating leverage.
Gross Margin Recovery Masked by SG&A Surge
Gross margins have stabilized in the 53-54% range, a recovery from the 46.6% low in 2024Q3, but operating margins remain volatile, swinging from 20.4% in Q1 to 5.6% in Q4, indicating inconsistent cost control.
The gross margin improvement suggests better pricing power or a more favorable service mix post-restructuring. However, the operating margin's extreme quarterly volatility, driven by SG&A consuming nearly half of revenue, indicates that the company's true earning power is being obscured by lumpy expense recognition and potentially non-recurring items. Net margin follows a similar erratic pattern, making it an unreliable indicator of core profitability.
ROIC Recovery Remains Nascent and Inconsistent
Return on Invested Capital has recovered from negative territory to 2.0% in 2026Q4, but remains well below the 6.8% peak in 2026Q1, suggesting the business is not yet generating consistent returns on its capital base.
The ROIC trend shows a business in transition, with returns highly sensitive to quarterly earnings volatility. The driver appears to be margin recovery rather than capital efficiency, as asset turnover has remained low and stable around 0.15-0.19. For ROIC to sustainably improve, the company must demonstrate it can convert its revenue growth into stable operating profits without the current level of SG&A intensity.
Working Capital Efficiency is a Key Cash Driver
The cash conversion cycle has been highly erratic, ranging from -1 to 9 days, with a significant working capital release of $75.2M in 2025Q4 driving that quarter's strong operating cash flow.
The company's efficiency metrics reveal a business where cash generation is heavily influenced by timing of collections and payments rather than operational throughput. Days Sales Outstanding (DSO) is consistently low at 3-9 days, indicating strong customer prepayments, which is a structural advantage. However, the volatility in the CCC suggests that working capital management is not a steady contributor to cash flow, making free cash flow less predictable.
Conservative Leverage with Strategic Debt Uptick
Despite a 50.5% increase in total debt to $849M, the debt-to-equity ratio remains a conservative 0.20, and the company maintains a substantial cash buffer of $2.0B.
The leverage profile is healthy, with the debt increase appearing strategic rather than necessitated by operational stress. The absence of interest coverage data in the provided metrics is a limitation, but the low D/E and large cash position suggest minimal refinancing risk. The company's leverage is not a current concern, but investors should monitor whether the debt is being deployed effectively to generate returns above its cost.
The Misleading Safety of the Current Ratio
The current ratio of 1.50 appears adequate but is misleading for EDU's model, as it includes $2.2B in deferred revenue—a future service obligation—within current liabilities, masking the true liquidity pressure.
For a prepaid-services business like EDU, the current ratio is commonly misapplied because it treats deferred revenue (cash already collected for future services) as a liability requiring near-term settlement. This overstates the company's short-term liquidity risk. A more appropriate metric would be the quick ratio excluding deferred revenue, or analyzing the cash position relative to non-deferred current liabilities. The reported quick ratio of 1.47 is similarly distorted by the same deferred revenue component.