Latest Ratios: P/E Ratio 20.8x · EV/EBITDA 12.8x · ROE 9.3%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.6B | $7.7B | $13.3B | $6.3B | $2.2B | $16.9B | $19.1B | $13.6B | $15.8B | $11.3B | $6.6B |
| Enterprise Value | $6.8B | $6.9B | $12.6B | $5.1B | $1.7B | $17.4B | $19.8B | $12.6B | $14.8B | $10.7B | $5.9B |
| P/E Ratio → | 20.79 | 20.59 | 44.41 | 37.67 | — | 51.15 | 46.14 | 57.10 | 52.35 | 42.16 | 30.18 |
| P/S Ratio | 1.56 | 1.57 | 3.09 | 2.12 | 0.71 | 3.95 | 5.35 | 4.40 | 6.44 | 6.29 | 4.50 |
| P/B Ratio | 1.96 | 1.94 | 3.30 | 1.66 | 0.58 | 3.37 | 6.67 | 5.39 | 7.12 | 6.58 | 4.64 |
| P/FCF | 11.99 | 12.04 | 15.90 | 7.67 | — | 24.36 | 38.67 | 25.76 | 28.09 | 22.10 | 14.66 |
| P/OCF | 8.52 | 8.56 | 11.89 | 6.54 | — | 14.95 | 23.79 | 16.91 | 20.19 | 18.32 | 12.84 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.40 | 2.93 | 1.72 | 0.56 | 4.08 | 5.53 | 4.06 | 6.04 | 5.94 | 4.02 |
| EV / EBITDA | 12.77 | 12.83 | 27.59 | 16.45 | — | 50.22 | 36.02 | 29.96 | 43.26 | 33.65 | 24.03 |
| EV / EBIT | 15.96 | 14.05 | 28.99 | 17.03 | — | 54.24 | 40.21 | 39.57 | 41.42 | 32.30 | 30.45 |
| EV / FCF | — | 10.77 | 15.03 | 6.21 | — | 25.15 | 40.01 | 23.76 | 26.34 | 20.85 | 13.10 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.4% | 55.4% | 52.5% | 53.0% | 43.5% | 52.4% | 55.6% | 55.6% | 56.5% | 58.3% | 58.4% |
| Operating Margin | 8.7% | 8.7% | 8.1% | 6.3% | -31.6% | 2.7% | 11.1% | 9.9% | 10.7% | 14.6% | 13.4% |
| Net Profit Margin | 7.6% | 7.6% | 7.2% | 5.9% | -38.2% | 7.8% | 11.5% | 7.7% | 12.1% | 15.3% | 15.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.3% | 9.3% | 7.9% | 4.7% | -27.0% | 8.5% | 15.3% | 10.0% | 15.1% | 17.4% | 16.9% |
| ROA | 4.9% | 4.9% | 4.4% | 2.9% | -14.7% | 4.0% | 7.4% | 5.5% | 8.6% | 10.4% | 10.4% |
| ROIC | 9.9% | 9.9% | 8.9% | 4.8% | -16.6% | 1.9% | 12.6% | 18.8% | 17.1% | 21.8% | 21.0% |
| ROCE | 9.5% | 9.5% | 8.1% | 4.5% | -17.9% | 2.2% | 11.9% | 12.6% | 13.3% | 16.6% | 14.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.16 | 0.12 | 0.18 | 0.43 | 0.55 | 0.04 | — | — | — |
| Debt / EBITDA | 1.50 | 1.50 | 1.45 | 1.47 | — | 6.22 | 2.87 | 0.23 | — | — | — |
| Net Debt / Equity | — | -0.20 | -0.18 | -0.32 | -0.12 | 0.11 | 0.23 | -0.42 | -0.44 | -0.37 | -0.49 |
| Net Debt / EBITDA | -1.51 | -1.51 | -1.59 | -3.85 | — | 1.58 | 1.21 | -2.53 | -2.88 | -2.02 | -2.87 |
| Debt / FCF | — | -1.27 | -0.87 | -1.45 | — | 0.79 | 1.34 | -2.01 | -1.75 | -1.25 | -1.56 |
| Interest Coverage | 1570.90 | 1570.90 | 1460.42 | 427.35 | -253.94 | 47.68 | 106.43 | 196.57 | — | — | — |
Net cash position: cash ($1.6B) exceeds total debt ($804M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.58 | 1.58 | 1.80 | 1.96 | 2.62 | 1.89 | 1.52 | 1.73 | 1.68 | 1.93 | 2.04 |
| Quick Ratio | 1.55 | 1.55 | 1.76 | 1.94 | 2.60 | 1.88 | 1.50 | 1.71 | 1.66 | 1.91 | 2.01 |
| Cash Ratio | 1.39 | 1.39 | 1.59 | 1.78 | 2.45 | 1.80 | 1.42 | 1.59 | 1.55 | 1.80 | 1.89 |
| Asset Turnover | — | 0.63 | 0.57 | 0.47 | 0.51 | 0.42 | 0.55 | 0.67 | 0.62 | 0.62 | 0.63 |
| Inventory Turnover | 26.99 | 26.99 | 22.10 | 26.75 | 62.82 | 65.34 | 50.72 | 47.38 | 26.53 | 23.61 | 22.50 |
| Days Sales Outstanding | — | 14.14 | 16.40 | 16.65 | 14.75 | 10.11 | 0.43 | 0.39 | 0.47 | 0.68 | 0.93 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 1.3% | — | — | — | — | — | — | 0.5% | — | 0.9% |
| Payout Ratio | 26.4% | 26.4% | — | — | — | — | — | — | 24.0% | — | 27.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.9% | 2.3% | 2.7% | — | 2.0% | 2.2% | 1.8% | 1.9% | 2.4% | 3.3% |
| FCF Yield | 8.3% | 8.3% | 6.3% | 13.0% | — | 4.1% | 2.6% | 3.9% | 3.6% | 4.5% | 6.8% |
| Buyback Yield | 5.8% | 5.8% | 0.5% | 3.0% | 0.0% | 0.0% | 0.0% | 0.4% | 0.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.1% | 7.1% | 0.5% | 3.0% | 0.0% | 0.0% | 0.0% | 0.4% | 1.0% | 0.0% | 0.9% |
| Shares Outstanding | — | $162M | $167M | $169M | $170M | $165M | $160M | $159M | $159M | $158M | $157M |
Regulatory and geopolitical volatility
According to recent market data, EDU trades at a forward P/E of 13.36, which suggests that investors are discounting the company's transition from a pure-play education provider to a diversified consumer platform compared to the higher multiples historically commanded by the firm during its K-12 dominance.
The current valuation appears to reflect a cautious outlook on the sustainability of the e-commerce revenue stream, which is inherently more volatile than the legacy education business. Investors should monitor whether the market continues to apply a conglomerate discount or begins to re-rate the stock based on the successful integration of its content-to-commerce model.
Based on reported figures, ROIC has fluctuated significantly, reaching 6.8% in 2026Q1, which indicates that the company is still in the process of recalibrating its capital deployment strategy to match the lower-margin, higher-turnover requirements of its new retail-oriented business segments compared to historical education-focused returns.
The volatility in ROIC suggests that the firm's recent investments in physical and digital infrastructure have yet to reach a steady-state efficiency. Analysts should investigate whether the current trend of decaying returns on invested capital is a temporary byproduct of the pivot or a structural shift in the business model's profitability.
As reported in financial statements, the cash conversion cycle has remained tight, averaging low single digits over the last ten quarters, which demonstrates that the company maintains strong control over its working capital despite the operational complexity of managing both service-based education and retail-based e-commerce inventory.
The ability to maintain a low CCC suggests that the company effectively leverages its position to manage supplier and customer payments, mitigating the risk of liquidity traps. However, the shift toward physical product sales in the e-commerce arm warrants close monitoring of inventory turnover to ensure that the company does not accumulate obsolete stock.
Based on the provided balance sheet data, EDU maintains a minimal debt-to-equity ratio of 0.18 as of 2026Q1, which indicates that the company has successfully avoided reliance on external debt to fund its strategic transformation, providing a significant safety margin against potential regulatory or operational shocks.
This low leverage profile is a critical differentiator compared to peers who may be more sensitive to interest rate fluctuations or credit market tightening. The company's ability to self-fund its pivot suggests a high degree of financial flexibility, though investors should monitor if management eventually shifts toward more aggressive capital structures to drive growth.
The most commonly misapplied metric for EDU is the traditional P/E ratio, which obscures the underlying volatility of the e-commerce segment and fails to account for the significant cash reserves that act as a non-operating asset, potentially leading to an inaccurate assessment of the firm's true earnings power.
Analysts should instead focus on EV/EBITDA or P/FCF, adjusting for the cash-heavy balance sheet to better reflect the operational performance of the core business. Relying solely on P/E ignores the structural shift in the company's identity and may lead to an underestimation of the value inherent in its diversified consumer platform.
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying EDU stock.
New Oriental Education & Technology Group Inc.'s current P/E ratio is 20.8x. The historical average is 39.6x. This places it at the 17th percentile of its historical range.
New Oriental Education & Technology Group Inc.'s current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.1x.
New Oriental Education & Technology Group Inc.'s return on equity (ROE) is 9.3%. The historical average is 13.9%.
Based on historical data, New Oriental Education & Technology Group Inc. is trading at a P/E of 20.8x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
New Oriental Education & Technology Group Inc.'s current dividend yield is 1.27% with a payout ratio of 26.4%.
New Oriental Education & Technology Group Inc. has 55.4% gross margin and 8.7% operating margin.
New Oriental Education & Technology Group Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.