Latest Ratios: P/E Ratio 17.0x · EV/EBITDA 10.2x · ROE 11.5%. (2005–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.6B | $7.3B | $7.7B | $13.3B | $6.3B | $2.2B | $16.9B | $19.1B | $13.6B | $15.8B | $11.3B |
| Enterprise Value | $7.5B | $6.1B | $6.9B | $12.6B | $5.1B | $1.7B | $17.4B | $19.8B | $12.6B | $14.8B | $10.7B |
| P/E Ratio → | 16.99 | 15.26 | 20.59 | 44.41 | 37.67 | — | 51.15 | 46.14 | 57.10 | 52.35 | 42.16 |
| P/S Ratio | 1.43 | 1.28 | 1.57 | 3.09 | 2.12 | 0.71 | 3.95 | 5.35 | 4.40 | 6.44 | 6.29 |
| P/B Ratio | 2.01 | 1.68 | 1.94 | 3.30 | 1.66 | 0.58 | 3.37 | 6.67 | 5.39 | 7.12 | 6.58 |
| P/FCF | 11.16 | 7.06 | 12.04 | 15.90 | 7.67 | — | 24.36 | 38.67 | 25.76 | 28.09 | 22.10 |
| P/OCF | 8.40 | 7.06 | 8.56 | 11.89 | 6.54 | — | 14.95 | 23.79 | 16.91 | 20.19 | 18.32 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.07 | 1.40 | 2.93 | 1.72 | 0.56 | 4.08 | 5.53 | 4.06 | 6.04 | 5.94 |
| EV / EBITDA | 10.16 | 9.45 | 11.95 | 27.59 | 16.45 | — | 50.89 | 36.01 | 29.94 | 43.24 | 33.64 |
| EV / EBIT | 11.58 | 9.45 | 14.05 | 28.99 | 17.03 | — | 54.24 | 40.21 | 39.57 | 41.42 | 32.30 |
| EV / FCF | — | 5.94 | 10.77 | 15.03 | 6.21 | — | 25.15 | 40.01 | 23.76 | 26.34 | 20.85 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.6% | 54.6% | 55.4% | 52.5% | 53.0% | 43.5% | 52.4% | 55.6% | 55.6% | 56.5% | 58.3% |
| Operating Margin | 11.4% | 11.4% | 8.7% | 8.1% | 6.3% | -31.6% | 2.7% | 11.1% | 9.9% | 10.7% | 14.6% |
| Net Profit Margin | 8.4% | 8.4% | 7.6% | 7.2% | 5.9% | -38.2% | 7.8% | 11.5% | 7.7% | 12.1% | 15.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.5% | 11.5% | 9.3% | 7.9% | 4.7% | -27.0% | 8.5% | 15.3% | 10.0% | 15.1% | 17.4% |
| ROA | 5.7% | 5.7% | 4.9% | 4.4% | 2.9% | -14.7% | 4.0% | 7.4% | 5.5% | 8.6% | 10.4% |
| ROIC | 15.3% | 15.3% | 9.9% | 8.9% | 4.8% | -16.6% | 1.9% | 12.6% | 18.8% | 17.1% | 21.8% |
| ROCE | 13.7% | 13.7% | 9.5% | 8.1% | 4.5% | -17.9% | 2.2% | 11.9% | 12.6% | 13.3% | 16.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.20 | 0.16 | 0.12 | 0.18 | 0.43 | 0.55 | 0.04 | — | — |
| Debt / EBITDA | 1.31 | 1.31 | 1.40 | 1.45 | 1.47 | — | 6.31 | 2.87 | 0.23 | — | — |
| Net Debt / Equity | — | -0.27 | -0.20 | -0.18 | -0.32 | -0.12 | 0.11 | 0.23 | -0.42 | -0.44 | -0.37 |
| Net Debt / EBITDA | -1.78 | -1.78 | -1.41 | -1.59 | -3.85 | — | 1.60 | 1.21 | -2.53 | -2.88 | -2.02 |
| Debt / FCF | — | -1.12 | -1.27 | -0.87 | -1.45 | — | 0.79 | 1.34 | -2.01 | -1.75 | -1.25 |
| Interest Coverage | — | — | 1570.90 | 1460.42 | 427.35 | -253.94 | 47.68 | 106.43 | 196.57 | — | — |
Net cash position: cash ($2.0B) exceeds total debt ($849M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.50 | 1.50 | 1.58 | 1.80 | 1.96 | 2.62 | 1.89 | 1.52 | 1.73 | 1.68 | 1.93 |
| Quick Ratio | 1.47 | 1.47 | 1.55 | 1.76 | 1.94 | 2.60 | 1.88 | 1.50 | 1.71 | 1.66 | 1.91 |
| Cash Ratio | 1.36 | 1.36 | 1.39 | 1.59 | 1.78 | 2.45 | 1.80 | 1.42 | 1.59 | 1.55 | 1.80 |
| Asset Turnover | — | 0.65 | 0.63 | 0.57 | 0.47 | 0.51 | 0.42 | 0.55 | 0.67 | 0.62 | 0.62 |
| Inventory Turnover | 24.36 | 24.36 | 26.99 | 22.10 | 26.75 | 62.82 | 65.34 | 50.72 | 47.38 | 26.53 | 23.61 |
| Days Sales Outstanding | — | 2.87 | 14.14 | 16.40 | 16.65 | 14.75 | 10.11 | 0.43 | 0.39 | 0.47 | 0.68 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | 1.3% | — | — | — | — | — | — | 0.5% | — |
| Payout Ratio | — | — | 26.4% | — | — | — | — | — | — | 24.0% | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 6.6% | 4.9% | 2.3% | 2.7% | — | 2.0% | 2.2% | 1.8% | 1.9% | 2.4% |
| FCF Yield | 9.0% | 14.2% | 8.3% | 6.3% | 13.0% | — | 4.1% | 2.6% | 3.9% | 3.6% | 4.5% |
| Buyback Yield | 0.0% | 0.0% | 5.8% | 0.5% | 3.0% | 0.0% | 0.0% | 0.0% | 0.4% | 0.6% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 7.1% | 0.5% | 3.0% | 0.0% | 0.0% | 0.0% | 0.4% | 1.0% | 0.0% |
| Shares Outstanding | — | $158M | $162M | $167M | $169M | $170M | $165M | $160M | $159M | $159M | $158M |
Includes 30+ ratios · 22 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 17.0x. The historical average is 38.3x. This places it at the 5th percentile of its historical range.
New Oriental Education & Technology Group Inc.'s current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 27.1x.
New Oriental Education & Technology Group Inc.'s return on equity (ROE) is 11.5%. The historical average is 13.8%.
Based on historical data, New Oriental Education & Technology Group Inc. is trading at a P/E of 17.0x. This is at the 5th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
New Oriental Education & Technology Group Inc. has 54.6% gross margin and 11.4% operating margin. Operating margin between 10-20% is typical for established companies.
New Oriental Education & Technology Group Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory pressure on tutoring segments
Discounted Multiples Reflect Unresolved Growth Durability
Based on EDU's reported figures, the trailing P/E of 23.9 compresses to a forward P/E of 15.8, while EV/EBITDA falls from 14.6 to 8.6, suggesting the market expects earnings to recover but has not yet priced in sustained growth.
Compared with TAL's trailing P/E of 3.7 and EV/EBITDA of 1.4, EDU trades at a substantial premium, which may reflect investor willingness to pay for its e-commerce diversification rather than its legacy education earnings. The gap between trailing and forward multiples implies a meaningful expected earnings lift, which investors should monitor against the volatile quarterly margin record before treating that recovery as credible. The 1.1% dividend yield and 13.5x price-to-free-cash-flow suggest some cash-based support, though quarterly FCF has swung between negative and above 30%, limiting confidence in that floor.
Operating Margins Swing on Seasonal Revenue Peaks
As reported in EDU's quarterly statements, operating margin ranged from negative territory to 20.4% over the ten-quarter window, with the latest quarter at 20.0%, indicating earnings power that depends heavily on the enrollment calendar.
Gross margin has held in a relatively narrow 52% to 59% band, which suggests pricing power is intact, but the sharp movement below the gross line points to operating cost structure, particularly personnel and traffic acquisition, absorbing a large share of revenue in weaker quarters. Using trailing operating margin of roughly 8.7% as a more representative figure than any single quarter, earnings power appears moderate rather than strong. Investors should treat the 20% peak margins as seasonal outcomes rather than a run-rate.
Returns Compounding Erratically Despite Cash Build
Based on reported figures, ROE has oscillated between 0.2% and 6.1% and ROIC between -0.2% and 8.2% across the ten quarters, suggesting that a growing equity and cash base has not yet translated into consistent capital returns.
A trailing ROE of 9.3% sits well below the 19.0% reported by TAL, indicating that EDU's capital base, including a sizable cash pile, is being deployed less productively than its peer. The divergence between ROE and ROIC is modest, which suggests leverage is not artificially inflating returns. Investors may wish to assess whether the cash accumulation reflects deliberate capital preservation or idle capital that dilutes returns.
Liquidity Adequate but Tightening Under Seasonal Pressure
As reported in financial statements, EDU's current ratio declined from 1.80 in 2024Q4 to a low of 1.50 in 2026Q4 before recovering to 1.61, while quick ratio tracked closely, indicating short-term coverage that is adequate but has narrowed.
Because inventory is minimal, quick and current ratios sit nearly identical, which suggests liquidity depends on receivables and cash rather than inventory conversion. The compression coincided with deferred revenue peaks, which may reflect obligations to deliver services rather than genuine distress. Under severe stress, the cash balance near $1.8B would likely cover current liabilities, though the reported figures do not allow a precise stress test.
Minimal Debt Keeps Coverage Concerns Contained
Based on EDU's reported figures, debt-to-equity remained between 0.16 and 0.20 across the period, while debt-to-EBITDA swung widely from 2.2 to above 40, suggesting that leverage is modest but earnings-based coverage is volatile.
The low D/E ratio suggests balance sheet leverage is not a material risk, but the extreme debt-to-EBITDA readings in weak quarters indicate that the leverage picture depends on which earnings base is used. Interest coverage is not reported in the supplied data, so conclusions about debt service comfort are limited. Investors should monitor whether trailing EBITDA stabilizes before drawing firm conclusions about coverage.
Peer Multiples May Overstate Relative Discount
Based on the supplied peer data, TAL's 3.7 P/E and 0.52 P/B may reflect a distressed or unusual earnings base rather than a clean benchmark, which could make EDU's apparent premium look larger or smaller than it is.
The TAL comparison drives much of the valuation read, yet TAL's multiples sit far below EDU's while its ROE of 19.0% is higher, a combination that warrants checking whether TAL's trailing earnings are depressed by one-off items. GOTU's negative earnings and 4.53 P/B make it an unreliable multiple anchor, leaving only one usable peer. Investors should treat the relative discount as an inference that depends on TAL's earnings quality and should not assume EDU is mispriced on this evidence alone.