Stock fact sheet · data as of
Gaotu Techedu Inc. (GOTU): fair value, margin of safety and Wheel Score
Ticker symbol GOTU · Consumer Defensive · Education & Training Services · China · ADR · Speculative
GOTU is an American depositary share (ADR): the US listing of Gaotu Techedu 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 GOTU undervalued?
GOTU closed at 2.35 on 5 Nov 2026 against a GLS average fair value of 2.57 - 8.7% below fair value, which our scans read as "fairly priced". 1 of 1 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
The average is built from just 1 models (10 Cap) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files GOTU under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for GOTU
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 | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 2.57 | +10% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -0.4108 | -117% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 2.94 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Gaotu Techedu Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.0/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -17.6%, ROE -25.8%, ROA -5.2% - with debt at 0.47 times equity and a free-cash-flow yield of 4.5%.
Gaotu Techedu Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Learning Services 100%, Other Revenue 1% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | -17.6% |
|---|---|---|---|
| GLS Moat | 4.0 / 10 | ROE | -25.8% |
| Debt / equity | 0.47 | ROA | -5.2% |
| Free-cash-flow yield | 4.5% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 23: Weak
With a Wheel Score of 23 Gaotu Techedu Inc. sits in the Weak band. It fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 7, a premium worth selling - implied volatility 143% (over 80%); and filter 8, big enough - market cap $829M (under $1.0B); and filter 9, not a penny stock - price 2.35 (under $5); Premium (weak) is its weakest part.
Implied volatility is 143%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 7,603 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 412k shares a day on a market cap of $829M, with a beta of 0.78 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| 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 | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 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 | Fails | implied volatility 143% (over 80%) |
| 8 | Big enough | Fails | market cap $829M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 2.35 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 9% below fair value | |
| Premium | Weak | implied volatility 143% | |
| Moat | Fair | moat 4.0/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Fair | Red Flags score 72/100 | |
| Option trading | Weak | 760 contracts a day, 7,603 open interest | |
| Stability | Fair | beta 0.78, $829M 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 25 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
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 Gaotu Techedu 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 |
|---|---|---|---|---|---|
| PXED Phoenix Education Partners, Inc | 21.66 | 48.20 | +55% | 34No options | $781M |
| APEI American Public Education, Inc. | 42.41 | 74.70 | +43% | 47Weak | $776M |
| AFYA Afya Limited | 10.50 | 35.73 | +71% | 39Weak | $960M |
| COUR Coursera, Inc. | 3.90 | 8.81 | +56% | 42Weak | $1.0B |
| LINC Lincoln Educational Services Corporation | 20.11 | 26.73 | +25% | 42Weak | $638M |
| UTI Universal Technical Institute, Inc. | 22.33 | 18.50 | -21% | 32Weak | $1.2B |
| DFPH DFP Healthcare Acquisitions Cor | 2.01 | - | - | 8No options | $436M |
| STRA Strategic Education, Inc. | 74.32 | 182.52 | +59% | 49Weak | $1.7B |
| PRDO Perdoceo Education Corporation | 29.99 | 48.76 | +38% | 53Fair | $1.9B |
| YUMM Yummies, Inc. | 0.7500 | 0.0000 | -191602102% | 10No options | $337M |
| MH McGraw Hill, Inc. | 12.76 | 28.27 | +55% | 46Weak | $2.4B |
| DAO Youdao, Inc. | 20.69 | 13.26 | -56% | 26Weak | $2.5B |
⚖ Compare GOTU with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about GOTU
Is GOTU undervalued right now?
Not meaningfully: at 2.35 the stock trades within a few percent of the GLS average fair value of 2.57 (8.7% below fair value, data as of 5 Nov 2026).
What is the Wheel Score of GOTU and what does it mean?
GOTU scores 23 out of 100 (Weak) - it fails Wheel Trade Filters 2, 4, 7, 8, 9. 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 GOTU?
2.57 per share as of 5 Nov 2026 - the simple average of the 1 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 Gaotu Techedu Inc. report earnings next?
The next earnings report is due on 25 Nov 2026 (before the open), 20 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does GOTU have listed options, and how liquid are they?
Yes. The nightly snapshot found 16 listed contracts with 7,603 open interest across all expiries and implied volatility of 143% 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 GOTU an ADR?
Yes. GOTU is an American depositary share (ADR): the US listing of Gaotu Techedu 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.