Stock fact sheet · data as of
New Oriental Education & Technology Group Inc. (EDU): fair value, margin of safety and Wheel Score
Ticker symbol EDU · Consumer Defensive · Education & Training Services · China · ADR · Blend
EDU is an American depositary share (ADR): the US listing of New Oriental Education & Technology Group Inc., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is EDU undervalued?
New Oriental Education & Technology Group Inc. (EDU) closed at 52.07 on 5 Nov 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 87.05, which puts the price 40% below it. 4 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: Graham Number gives 4.49 while Payback Time gives 184.54. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for EDU, so the nightly engine files it under Blend (value score 52, growth score 71, out of 100).
Nine valuation models for EDU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 4.49 | -91% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 115.34 | +122% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 45.59 | -12% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 166.10 | +219% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 127.70 | +145% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 184.54 | +254% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 17.66 | -66% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 35.02 | -33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 8.80 | -83% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 56.50 | +9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - EDU passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.1 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are moderate - ROIC 9.9%, ROE 12.0%, ROA 5.4% - with debt at 0.21 times equity and a free-cash-flow yield of 9.1%.
The dividend yield is 2.22% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Service 86%, Product 14% (fiscal year FY2026).
Institutional ownership scores 4/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 9.9% |
|---|---|---|---|
| GLS Moat | 5.1 / 10 | ROE | 12.0% |
| Debt / equity | 0.21 | ROA | 5.4% |
| Free-cash-flow yield | 9.1% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 82: Good
EDU scores 82 out of 100 on the Wheel Score (Good band, 70-84): it passes all 9 Wheel Trade Filters. How it ranks: value strong, premium strong, moat fair, health good, red flags strong, option trading weak, stability good; Option trading (weak) holds it back.
Implied volatility is 40% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,189 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 741k shares a day on a market cap of $8.1B, with a beta of 0.23 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 40% below fair value | |
| Premium | Strong | implied volatility 40% | |
| Moat | Fair | moat 5.1/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 681 contracts a day, 3,189 open interest | |
| Stability | Good | beta 0.23, $8.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 27 Jan 2027, 83 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 18 Nov 2026 (1.00 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Education & Training Services
The 12 companies below are the closest to New Oriental Education & Technology Group Inc. by market cap within the Education & Training Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TAL TAL Education Group | 9.91 | 99.71 | +90% | 81Good | $6.0B |
| LAUR Laureate Education, Inc. | 35.15 | 64.86 | +46% | 81Good | $4.8B |
| CVSA Covista Inc. | 124.19 | 234.64 | +47% | 83Good | $4.1B |
| LOPE Grand Canyon Education, Inc. | 150.67 | 184.53 | +18% | 48Weak | $3.9B |
| LRN Stride, Inc. | 79.24 | 258.10 | +69% | 80Good | $3.3B |
| DAO Youdao, Inc. | 20.69 | 13.26 | -56% | 26Weak | $2.5B |
| MH McGraw Hill, Inc. | 12.76 | 28.27 | +55% | 46Weak | $2.4B |
| PRDO Perdoceo Education Corporation | 29.99 | 48.76 | +38% | 53Fair | $1.9B |
| STRA Strategic Education, Inc. | 74.32 | 182.52 | +59% | 49Weak | $1.7B |
| UTI Universal Technical Institute, Inc. | 22.33 | 18.50 | -21% | 32Weak | $1.2B |
| COUR Coursera, Inc. | 3.90 | 8.81 | +56% | 42Weak | $1.0B |
| AFYA Afya Limited | 10.50 | 35.73 | +71% | 39Weak | $960M |
⚖ Compare EDU with 7 of them All Consumer Defensive stocks →
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about EDU
Is EDU undervalued right now?
By the GLS models, yes: at 52.07 the stock is 40% below the average fair value of 87.05 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of EDU and what does it mean?
EDU scores 82 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for EDU?
87.05 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does New Oriental Education & Technology Group Inc. report earnings next?
The next earnings report is due on 27 Jan 2027, 83 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does EDU have listed options, and how liquid are they?
Yes. The nightly snapshot found 48 listed contracts with 3,189 open interest across all expiries and implied volatility of 40% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is EDU an ADR?
Yes. EDU is an American depositary share (ADR): the US listing of New Oriental Education & Technology Group Inc., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.