Is it too late to consider buying New Oriental Education & Technology Group Inc. (NYSE: EDU)?

New Oriental Education & Technology Group Inc. (NYSE: EDU) has seen significant stock price movement in recent months on the NYSE, hitting highs of US $ 16.45 and falling to lows of $ 6.25 US. Certain movements in stock prices can give investors a better opportunity to get into the stock, and potentially buy at a lower price. One question to answer is whether the current price of US $ 6.84 from the New Oriental Education & Technology Group reflects the true value of the large cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of New Oriental Education & Technology Group based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest review for New Oriental Education & Technology Group

Is the New Oriental Education & Technology Group still cheap?

Good news for investors – New Oriental Education & Technology Group is still trading fairly low. According to my assessment, the intrinsic value of the stock is $ 9.22, but it is currently trading at US $ 6.84 in the stock market, which means there is still an opportunity to buy now. . Another thing to keep in mind is that New Oriental Education & Technology Group’s share price can be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you think the current stock price should move towards its intrinsic value over time, a low beta could suggest that it is not likely to reach that level anytime soon, and once it is. ‘there it can be difficult to fall back into an attractive buying range again.

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

NYSE: EDU Profits and Revenue Growth July 16, 2021

Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. While value investors argue that intrinsic value versus price matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to more than double over the next two years, the future looks bright for New Oriental Education & Technology Group. It looks like a higher cash flow is expected for the stock, which should fuel a higher valuation of stocks.

What this means for you:

Are you a shareholder? Given that EDU is currently undervalued, maybe now is a great time to increase your holdings of stocks. With optimistic prospects on the horizon, it seems that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on EDU for a while, now might be the time to take a leap. Its promising future prospects are not yet fully reflected in the current share price, which means it is not too late to buy EDU. But before making any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed purchase.

If you want to delve deeper into the topic of New Oriental Education & Technology Group, you will also look at the risks it currently faces. Every business has risks, and we have spotted 2 warning signs for New Oriental Education & Technology Group you should know.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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