Stock fact sheet · data as of
New Oriental Education & Technology Group Inc. (EDU): fair value, margin of safety and Wheel Score
Consumer Defensive · Education & Training Services · China · ADR · High Growth
Is EDU undervalued?
New Oriental Education & Technology Group Inc. (EDU) closed at 60.35 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 82.36, so the price sits 27% below it. 4 of the 8 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
The 8 models disagree widely: Graham Number gives 4.18 while Payback Time gives 181.26. 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.
The nightly engine files EDU under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
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 | 4.18 | -93% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 103.70 | +72% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 40.27 | -33% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 152.57 | +153% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 125.88 | +109% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 181.26 | +200% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 17.66 | -71% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 33.34 | -45% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 8.80 | -85% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 56.50 | -6% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health EDU scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.5 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in 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 8.0%.
The dividend yield is 1.96% 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 | 7 / 9 | ROIC | 9.9% |
|---|---|---|---|
| GLS Moat | 5.5 / 10 | ROE | 12.0% |
| Debt / equity | 0.21 | ROA | 5.4% |
| Free-cash-flow yield | 8.0% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 85: Prime
EDU scores 85 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 24/25), Piotroski health (16/20), the GLS moat (8/15), the option premium on offer (20/20) and how easily the stock trades (18/20).
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,533 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 974k shares a day on a market cap of $9.4B, 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 gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 27% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.5/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 18 / 20 | 974k shares/day, $9.4B cap, beta 0.23 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
New Oriental Education & Technology Group Inc. reports earnings on 28 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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 | 12.51 | 95.56 | +87% | 85Prime | $7.6B |
| LAUR Laureate Education, Inc. | 39.04 | 63.72 | +39% | 86Prime | $5.4B |
| CVSA Covista Inc. | 127.24 | 235.79 | +46% | 89Prime | $4.3B |
| LOPE Grand Canyon Education, Inc. | 161.43 | 166.55 | +3% | 72Good | $4.2B |
| LRN Stride, Inc. | 83.18 | 245.69 | +66% | 85Prime | $3.5B |
| MH McGraw Hill, Inc. | 14.20 | 26.91 | +47% | 76Good | $2.7B |
| DAO Youdao, Inc. | 18.51 | 12.84 | -44% | 39Weak | $2.2B |
| PRDO Perdoceo Education Corporation | 33.55 | 48.56 | +31% | 87Prime | $2.1B |
| STRA Strategic Education, Inc. | 80.97 | 180.97 | +55% | 83Prime | $1.8B |
| COUR Coursera, Inc. | 5.09 | 9.88 | +48% | 45Weak | $1.3B |
| AFYA Afya Limited | 14.52 | 85.46 | +83% | 66Good | $1.3B |
| UTI Universal Technical Institute, Inc. | 20.31 | 18.31 | -11% | 66Good | $1.1B |
⚖ Compare EDU with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about EDU
Is EDU undervalued right now?
By the GLS models, moderately: at 60.35 the stock trades 27% below the average fair value of 82.36 (data as of 16 Oct 2026).
What is the Wheel Score of EDU and what does it mean?
EDU scores 85 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for EDU?
82.36 per share as of 16 Oct 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 28 Oct 2026 (before the open), 12 days from the data date of 16 Oct 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 126 listed contracts with 4,533 open interest across all expiries and implied volatility of 46% 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.