Latest Ratios: P/E Ratio 4.3x · EV/EBITDA 2.5x · ROE 14.1%. (2009–2026 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 | $2.2B | $2.0B | $875M | $982M | $493M | $201M | $5.2B | $3.6B | $2.4B | $2.4B | $896M |
| Enterprise Value | $868M | $668M | $-562916124 | $-987993759 | $-1371046851 | $-1194759514 | $6.1B | $3.2B | $1.3B | $1.9B | $876M |
| P/E Ratio → | 4.34 | 3.82 | 10.25 | — | — | — | — | — | 6.59 | 12.71 | 7.35 |
| P/S Ratio | 0.74 | 0.67 | 0.39 | 0.66 | 0.49 | 0.05 | 1.16 | 1.09 | 0.92 | 1.40 | 0.86 |
| P/B Ratio | 0.61 | 0.54 | 0.23 | 0.27 | 0.13 | 0.05 | 1.00 | 1.40 | 0.93 | 1.48 | 1.32 |
| P/FCF | 4.37 | 3.98 | 3.06 | 5.31 | — | — | 7.35 | 5.33 | — | 4.35 | 3.11 |
| P/OCF | 3.70 | 3.37 | 2.20 | 3.21 | 67.02 | — | 5.46 | 4.16 | 12.10 | 3.53 | 2.49 |
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 | — | 0.22 | -0.25 | -0.66 | -1.35 | -0.27 | 1.36 | 0.98 | 0.52 | 1.13 | 0.84 |
| EV / EBITDA | 2.48 | 1.91 | -11.45 | — | — | -21.69 | — | 11.76 | 3.12 | 7.34 | 5.32 |
| EV / EBIT | 3.13 | 0.97 | -4.59 | -87.95 | — | — | — | 20.39 | 3.95 | 9.47 | 6.68 |
| EV / FCF | — | 1.31 | -1.97 | -5.34 | — | — | 8.62 | 4.79 | — | 3.49 | 3.04 |
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 | 55.4% | 55.4% | 53.3% | 54.1% | 57.2% | 49.8% | 54.4% | 55.1% | 54.6% | 48.6% | 49.9% |
| Operating Margin | 9.2% | 9.2% | -0.1% | -5.7% | -11.1% | -3.0% | -7.8% | 4.8% | 13.1% | 11.9% | 12.6% |
| Net Profit Margin | 17.6% | 17.6% | 3.8% | -0.2% | -13.3% | -25.9% | -2.6% | -3.4% | 14.3% | 11.6% | 11.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.1% | 14.1% | 2.3% | -0.1% | -3.5% | -24.7% | -3.0% | -4.3% | 17.6% | 17.2% | 20.8% |
| ROA | 9.3% | 9.3% | 1.6% | -0.1% | -2.8% | -13.2% | -1.3% | -2.4% | 10.8% | 8.2% | 8.1% |
| ROIC | 8.8% | 8.8% | -0.1% | -3.5% | -3.7% | -2.2% | -6.4% | 6.4% | 18.8% | 16.9% | 22.0% |
| ROCE | 6.7% | 6.7% | -0.1% | -2.2% | -2.8% | -2.0% | -5.6% | 5.0% | 15.0% | 13.3% | 14.3% |
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 | 0.10 | 0.10 | 0.09 | 0.07 | 0.04 | 0.06 | 0.80 | 0.60 | 0.09 | 0.14 | 0.66 |
| Debt / EBITDA | 1.11 | 1.11 | 6.78 | — | — | 4.40 | — | 5.57 | 0.51 | 0.89 | 2.73 |
| Net Debt / Equity | — | -0.36 | -0.38 | -0.54 | -0.49 | -0.35 | 0.17 | -0.14 | -0.41 | -0.29 | -0.03 |
| Net Debt / EBITDA | -3.90 | -3.90 | -29.26 | — | — | -25.35 | — | -1.31 | -2.44 | -1.79 | -0.12 |
| Debt / FCF | — | -2.67 | -5.03 | -10.65 | — | — | 1.27 | -0.53 | — | -0.85 | -0.07 |
| Interest Coverage | — | — | — | — | — | -96.67 | -20.73 | 13.28 | 18.97 | 12.35 | 9.98 |
Net cash position: cash ($1.8B) exceeds total debt ($387M)
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 | 2.17 | 2.17 | 2.86 | 3.42 | 4.42 | 4.02 | 2.42 | 1.38 | 1.47 | 1.47 | 1.30 |
| Quick Ratio | 2.09 | 2.09 | 2.79 | 3.36 | 4.37 | 4.00 | 2.41 | 1.37 | 1.47 | 1.46 | 1.30 |
| Cash Ratio | 1.96 | 1.96 | 2.51 | 3.05 | 4.05 | 3.00 | 1.76 | 1.23 | 1.28 | 1.32 | 1.05 |
| Asset Turnover | — | 0.51 | 0.41 | 0.30 | 0.22 | 0.87 | 0.37 | 0.59 | 0.69 | 0.56 | 0.57 |
| Inventory Turnover | 9.41 | 9.41 | 10.01 | 10.01 | 11.15 | 101.12 | 53.13 | 56.84 | 150.01 | 168.31 | 184.67 |
| Days Sales Outstanding | — | 10.04 | 17.17 | 19.77 | 16.10 | 6.20 | 2.10 | 4.76 | 7.16 | 3.48 | 37.12 |
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 | — | — | — | — | — | — | — | — | — | 1.7% | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 20.6% | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 23.0% | 26.2% | 9.8% | — | — | — | — | — | 15.2% | 7.9% | 13.6% |
| FCF Yield | 22.9% | 25.1% | 32.6% | 18.8% | — | — | 13.6% | 18.8% | — | 23.0% | 32.2% |
| Buyback Yield | 29.0% | 31.8% | 1.5% | 23.8% | 13.5% | 97.5% | 0.2% | 0.0% | 0.0% | 0.0% | 2.2% |
| Total Shareholder Yield | 29.0% | 31.8% | 1.5% | 23.8% | 13.5% | 97.5% | 0.2% | 0.0% | 0.0% | 1.7% | 2.2% |
| Shares Outstanding | — | $193M | $68M | $67M | $70M | $71M | $67M | $65M | $66M | $64M | $62M |
Includes 30+ ratios · 18 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying TAL stock.
TAL Education Group's current P/E ratio is 4.3x. The historical average is 5.7x. This places it at the 55th percentile of its historical range.
TAL Education Group's current EV/EBITDA is 2.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.7x.
TAL Education Group's return on equity (ROE) is 14.1%. The historical average is 29.2%.
Based on historical data, TAL Education Group is trading at a P/E of 4.3x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TAL Education Group has 55.4% gross margin and 9.2% operating margin.
TAL Education Group's Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory reclassification risk
Valuation Reflects Deep Discount to Peers
TAL trades at a significant discount to its primary peer New Oriental, with a P/E of 4.33 versus EDU's 25.58, suggesting the market is pricing in substantial regulatory and execution risk despite the company's recent operational turnaround.
The forward P/E of 18.98 indicates the market expects a normalization of earnings, likely driven by the non-operating income component that inflated the trailing net margin to 53.8%. The EV/EBITDA of 2.46 is exceptionally low for a company with accelerating revenue growth, implying the market is either skeptical of the sustainability of the hardware-driven pivot or is applying a severe conglomerate discount due to the mixed business model. The P/B of 0.61 further underscores that the market values TAL's assets at a steep discount to their book value, which may reflect concerns about the future earning power of its substantial cash pile and new hardware investments.
Operating Leverage Unlocked, But Earnings Quality is Mixed
Operating margin expanded to 18.1% in 2027Q1, a dramatic turnaround from negative levels in 2025, indicating successful cost control and scale benefits, yet the 53.8% net margin appears inflated by non-operating items.
The gross margin expansion to 57.8% suggests a favorable mix shift towards higher-margin digital content and services, which is a positive structural development. However, the significant gap between the operating margin (18.1%) and the net margin (53.8%) strongly implies that a large portion of net income is derived from interest income on the $1.75B cash balance or other non-recurring gains, not core operations. Investors should focus on the operating margin as the truest reflection of the business's earning power, as the net margin is likely unsustainable without the massive cash pile generating outsized returns.
ROIC Recovery Driven by Margin, Not Efficiency
ROIC has recovered from negative territory to 3.8% in 2027Q1, driven primarily by the surge in operating margins rather than a significant improvement in asset turnover, which remains low at 0.12.
The turnaround in ROIC from -0.8% in 2025Q1 to 3.8% is a direct result of the company achieving positive operating leverage and covering its fixed cost base. However, the asset turnover ratio of 0.12 is still very low, indicating that the company's asset base, now heavier with PPE for hardware production, is not yet generating sales efficiently. This suggests the return on capital improvement is in its early stages and is currently more a function of cost discipline than of superior capital efficiency. The sustainability of this ROIC trend depends on whether asset turnover can improve as the hardware business scales.
Negligible Leverage Provides Strategic Buffer
With a debt-to-equity ratio of just 0.10 and $1.6B in cash against $405.5M in total debt, TAL maintains a fortress balance sheet that insulates it from refinancing risk and provides ample capital for strategic initiatives.
The minimal leverage is a direct result of management's conservative capital allocation post-regulatory shock, prioritizing survival and optionality over financial engineering. This position is a stark contrast to peers like Gaotu Techedu (D/E of 0.47), giving TAL significant strategic flexibility to invest in R&D or pursue acquisitions without balance sheet strain. The interest coverage ratio is not meaningful given the negligible debt load, but the company's massive cash position suggests it is a net interest earner, which may provide a small tailwind in a higher-rate environment.
Liquidity Position is Strong but Volatile
The current ratio has compressed from 3.42 in 2024Q4 to 1.69 in 2027Q1, but the company's $1.6B cash position still represents a substantial buffer, though its volatility suggests active deployment for operations and shareholder returns.
The compression in the current ratio is not a sign of distress but rather reflects the active use of cash for operations, share repurchases, and investment in the hardware business. The quick ratio of 1.61, which excludes inventory, confirms that the company's liquidity is not overly dependent on selling its new hardware inventory. Under severe stress, the company's liquidity would be robust due to its large cash balance, but the trend warrants monitoring to ensure the cash burn from strategic investments does not erode the buffer faster than anticipated.
The Misleading Power of the Net Margin
The most commonly misapplied ratio is TAL's net margin, which at 53.8% appears stellar but is heavily distorted by non-operating income from its large cash pile, obscuring the true operational profitability of the business model.
Investors using the net margin to benchmark TAL against pure-play education or hardware companies will draw incorrect conclusions about its core earning power. The appropriate alternative metric is the operating margin, which at 18.1% provides a clearer picture of the profitability of the learning services and hardware segments themselves. The net margin's inflation by interest income creates a misleading impression of operational excellence and may lead to overestimation of the business's intrinsic value if the cash pile is not considered a separate, non-operating asset.