New Oriental Education & Technology Group Inc ADR (EDU) is undervalued and Stride Inc (LRN) is undervalued.
Against our estimates of intrinsic value, LRN trades at the wider discount: a margin of safety of +56%, 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 $177.25; the price of $78.69 is 56% below that value, and 81% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | EDU | LRN |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $54.74 | $78.69 |
| Intrinsic value | $72.33 | $177.25 |
| Margin of safety | +24% | +56% |
| Leak Score | 100/100 (3/12) | 100/100 (3/12) |
| Market cap | $8.7B | $3.3B |
| Revenue growth, 5 years | 5.7% | 10.4% |
| Operating margin | 11.4% | 18.1% |
| Net margin | 8.4% | 13.4% |
| Return on equity | 12.5% | 21.7% |
| Debt to equity | 0.21 | 0.33 |
| P/E | 18.3x | 10.9x |
| Forward P/E | 10.7x | 9.9x |
| P/B | 2.2x | 2.0x |
| Dividend yield | 3.5% | — |