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What Is New Oriental Education & Technology Group Inc’s (NYSE:EDU) Share Price Doing?

New Oriental Education & Technology Group Inc (NYSE:EDU) saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine New Oriental Education & Technology Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. View out our latest analysis for New Oriental Education & Technology Group

What is New Oriental Education & Technology Group worth?

According to my valuation model, New Oriental Education & Technology Group seems to be fairly priced at around 17.62% below my intrinsic value, which means if you buy New Oriental Education & Technology Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth $122.51, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that New Oriental Education & Technology Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will New Oriental Education & Technology Group generate?

NYSE:EDU Future Profit June 26th 18
NYSE:EDU Future Profit June 26th 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. New Oriental Education & Technology Group’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in EDU’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

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Are you a potential investor? If you’ve been keeping tabs on EDU, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on New Oriental Education & Technology Group. You can find everything you need to know about New Oriental Education & Technology Group in the latest infographic research report. If you are no longer interested in New Oriental Education & Technology Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.