Canada markets closed

At US$128, Is It Time To Put New Oriental Education & Technology Group Inc. (NYSE:EDU) On Your Watch List?

Simply Wall St

Let's talk about the popular New Oriental Education & Technology Group Inc. (NYSE:EDU). The company's shares saw significant share price movement during recent months on the NYSE, rising to highs of US$142 and falling to the lows of US$120. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether New Oriental Education & Technology Group's current trading price of US$128 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at New Oriental Education & Technology Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for New Oriental Education & Technology Group

What is New Oriental Education & Technology Group worth?

Great news for investors – New Oriental Education & Technology Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $216.13, but it is currently trading at US$128 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, New Oriental Education & Technology Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of New Oriental Education & Technology Group look like?

NYSE:EDU Past and Future Earnings, March 11th 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for New Oriental Education & Technology Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since EDU is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health 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 enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EDU. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.