New Oriental Education & Technology Group Inc ADR (EDU) is undervalued and Laureate Education Inc (LAUR) is undervalued.
Against our estimates of intrinsic value, LAUR trades at the wider discount: a margin of safety of +27%, against +24% for EDU.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.6% (average of 3 methods) values the shares at $72.33; the price of $54.74 is 24% below that value, and 81% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 7.6% (average of 3 methods) values the shares at $49.80; the price of $36.13 is 27% below that value, and 81% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | EDU | LAUR |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $54.74 | $36.13 |
| Intrinsic value | $72.33 | $49.80 |
| Margin of safety | +24% | +27% |
| Leak Score | 100/100 (3/12) | 100/100 (3/12) |
| Market cap | $8.7B | $5.0B |
| Revenue growth, 5 years | 5.7% | 10.7% |
| Operating margin | 11.4% | 24.4% |
| Net margin | 8.4% | 17.6% |
| Return on equity | 12.5% | 29.4% |
| Debt to equity | 0.21 | 0.64 |
| P/E | 18.3x | 16.2x |
| Forward P/E | 10.7x | 14.8x |
| P/B | 2.2x | 4.4x |
| Dividend yield | 3.5% | 2.6% |