Latest Ratios: P/E Ratio -14.1x · EV/EBITDA N/A · ROE -20.3%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $631M | $851M | $845M | $1.4B | $935M | $745M | $18.6B | $6.9B | — | — |
| Enterprise Value | $613M | $725M | $16M | $952M | $197M | $373M | $19.0B | $7.0B | — | — |
| P/E Ratio → | -14.07 | — | — | — | 69.82 | — | — | 36.43 | — | — |
| P/S Ratio | 0.70 | 0.14 | 0.19 | 0.47 | 0.37 | 0.11 | 2.61 | 3.24 | — | — |
| P/B Ratio | 3.46 | 0.68 | 0.44 | 0.45 | 0.30 | 0.26 | 3.24 | 4.41 | — | — |
| P/FCF | 17.38 | 3.45 | 10.59 | 4.48 | 3.83 | — | 58.22 | 5.61 | — | — |
| P/OCF | 10.30 | 2.05 | 3.27 | 3.96 | 2.50 | — | 30.80 | 5.34 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.12 | 0.00 | 0.32 | 0.08 | 0.06 | 2.67 | 3.33 | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | 30.91 | — | — |
| EV / EBIT | — | — | — | 283.54 | — | — | — | 32.63 | — | — |
| EV / FCF | — | 2.94 | 0.20 | 3.04 | 0.81 | — | 59.60 | 5.75 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.4% | 67.4% | 68.0% | 73.3% | 71.9% | 63.5% | 75.3% | 74.7% | 64.1% | 74.4% |
| Operating Margin | -8.2% | -8.2% | -26.0% | -5.0% | -4.7% | -48.5% | -24.6% | 10.2% | 4.8% | -94.7% |
| Net Profit Margin | -5.3% | -5.3% | -23.0% | -0.2% | 0.5% | -47.3% | -19.6% | 10.7% | 4.9% | -89.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -20.3% | -20.3% | -41.6% | -0.2% | 0.4% | -72.1% | -38.2% | 42.6% | — | — |
| ROA | -5.4% | -5.4% | -18.7% | -0.1% | 0.3% | -39.5% | -19.8% | 12.1% | 8.9% | -84.2% |
| ROIC | -33.8% | -33.8% | -47.1% | -4.5% | -3.6% | -55.0% | -33.3% | 26.7% | — | — |
| ROCE | -22.2% | -22.2% | -39.3% | -4.4% | -3.6% | -65.2% | -42.6% | 24.8% | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.47 | 0.47 | 0.25 | 0.06 | 0.03 | 0.12 | 0.14 | 0.16 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | 1.12 | — | — |
| Net Debt / Equity | — | -0.10 | -0.43 | -0.14 | -0.24 | -0.13 | 0.08 | 0.12 | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | 0.79 | -1.42 | — |
| Debt / FCF | — | -0.51 | -10.39 | -1.43 | -3.02 | — | 1.38 | 0.15 | -0.14 | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($712M) exceeds total debt ($586M)
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.94 | 0.94 | 1.12 | 1.82 | 2.59 | 2.24 | 2.01 | 1.10 | 0.79 | 0.34 |
| Quick Ratio | 0.92 | 0.92 | 1.11 | 1.81 | 2.57 | 2.23 | 2.00 | 1.10 | 0.72 | 0.34 |
| Cash Ratio | 0.81 | 0.81 | 0.97 | 1.46 | 2.33 | 1.99 | 1.83 | 0.95 | 0.65 | 0.18 |
| Asset Turnover | — | 0.99 | 0.78 | 0.55 | 0.51 | 1.31 | 0.67 | 0.62 | 1.17 | 0.95 |
| Inventory Turnover | 36.40 | 36.40 | 39.97 | 32.13 | 30.77 | 153.74 | 36.66 | 60.75 | 6.15 | — |
| Days Sales Outstanding | — | 13.56 | 11.90 | 8.84 | 3.59 | 2.78 | 0.59 | 4.59 | 23.02 | 76.31 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 1.4% | — | — | 2.7% | — | — |
| FCF Yield | 5.8% | 29.0% | 9.4% | 22.3% | 26.1% | — | 1.7% | 17.8% | — | — |
| Buyback Yield | 8.0% | 40.3% | 24.3% | 6.5% | 0.0% | 0.0% | 1.5% | 1.3% | — | — |
| Total Shareholder Yield | 8.0% | 40.3% | 24.3% | 6.5% | 0.0% | 0.0% | 1.5% | 1.3% | — | — |
| Shares Outstanding | — | $367M | $386M | $387M | $396M | $384M | $359M | $314M | $357M | $357M |
Regulatory and Traffic Costs
According to current market data, GOTU trades at a P/S ratio of 0.70, which appears to discount the company's growth potential relative to peers like New Oriental Education, likely reflecting investor skepticism regarding the long-term sustainability of its post-regulatory business model and profitability.
The negative P/E of -14.06 highlights the company's current inability to generate consistent bottom-line earnings, forcing investors to rely on sales-based multiples. This valuation suggests that the market views GOTU as a speculative turnaround play rather than a mature, cash-generative education provider.
Based on reported figures, GOTU's ROIC has fluctuated significantly, reaching -6.4% in 2025Q4, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital, a trend that warrants further investigation by long-term institutional investors.
The volatility in ROIC, ranging from a positive 2.1% in 2025Q1 to deep negative territory, suggests that management's capital allocation strategy is highly sensitive to the timing of marketing spend and regulatory shifts. Without a sustained improvement in operating margins, the company may struggle to compound value for shareholders over the long term.
As reported in financial statements, the company's asset turnover ratio of 0.30 in 2025Q4 remains low, suggesting that the firm's asset base is not yet being utilized with the efficiency required to drive meaningful top-line growth relative to its significant investment in digital infrastructure.
The reliance on deferred revenue as a primary liquidity source masks the underlying inefficiency in converting assets into revenue. Investors should monitor whether the company can improve its asset turnover as it scales its newer vocational and non-academic service offerings.
Based on recent filings, GOTU maintains a debt-to-equity ratio of 0.47, which appears conservative compared to historical norms and suggests that the company is not currently over-leveraged despite the significant operational challenges it faces in the competitive Chinese education technology sector.
While the debt load is manageable, the lack of consistent interest coverage data suggests that the company's ability to service debt is entirely dependent on its cash reserves rather than operational cash flow. This structure provides a temporary safety net but does not replace the need for sustainable profitability.
As indicated by industry analysis, the P/E ratio is the most commonly misapplied metric for GOTU, as it obscures the company's reliance on deferred revenue and high marketing spend, which are more characteristic of a technology platform than a traditional, stable education service provider.
Investors should instead focus on the CAC-to-LTV ratio and operating cash flow, as these metrics better capture the true economic health of the business. Relying on P/E in a period of strategic transition may lead to a fundamental misunderstanding of the company's actual earning power.
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Quick answers to the most common questions about buying GOTU stock.
Gaotu Techedu Inc.'s current P/E ratio is -14.1x. The historical average is 53.1x.
Gaotu Techedu Inc.'s return on equity (ROE) is -20.3%. The historical average is -18.5%.
Based on historical data, Gaotu Techedu Inc. is trading at a P/E of -14.1x. Compare with industry peers and growth rates for a complete picture.
Gaotu Techedu Inc. has 67.4% gross margin and -8.2% operating margin.