Gaotu Techedu Valuation
| GOTU Stock | USD 2.81 0.06 2.09% |
Based on Macroaxis valuation methodology, the firm appears to be undervalued. Gaotu Techedu DRC retains a regular Real Value of $3.4 per share. The prevalent price of the firm is $2.81. Our model calculates the value of Gaotu Techedu DRC from evaluating the firm fundamentals such as Current Valuation of 343.68 M, return on asset of -0.0954, and Return On Equity of -0.21 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Gaotu Techedu's valuation include:
Price Book 1.9725 | Enterprise Value 343.7 M | Enterprise Value Ebitda (9.76) | Price Sales 0.2117 | Forward PE 526.3158 |
Undervalued
Today
Please note that Gaotu Techedu's price fluctuation is very risky at this time. Calculation of the real value of Gaotu Techedu DRC is based on 3 months time horizon. Increasing Gaotu Techedu's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Gaotu Techedu's intrinsic value may or may not be the same as its current market price of 2.81, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2.81 | Real 3.4 | Target 4.18 | Hype 2.81 | Naive 2.48 |
The intrinsic value of Gaotu Techedu's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Gaotu Techedu's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Gaotu Techedu DRC helps investors to forecast how Gaotu stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Gaotu Techedu more accurately as focusing exclusively on Gaotu Techedu's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Gaotu Techedu's intrinsic value based on its ongoing forecasts of Gaotu Techedu's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Gaotu Techedu's closest peers.
Gaotu Techedu Cash |
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Gaotu Valuation Trend
Gaotu Techedu's real value is important for investors to make better decisions and a more accurate overall view of Gaotu Techedu's financial worth over time. Using both Gaotu Techedu's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Gaotu Techedu Total Value Analysis
Gaotu Techedu DRC is currently anticipated to have valuation of 343.68 M with market capitalization of 742.58 M, debt of 188.15 M, and cash on hands of 3.34 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Gaotu Techedu fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
343.68 M | 742.58 M | 188.15 M | 3.34 B |
Gaotu Techedu Investor Information
About 29.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.97. Some equities with similar Price to Book (P/B) outperform the market in the long run. Gaotu Techedu DRC recorded a loss per share of 0.33. The entity had not issued any dividends in recent years. Based on the key indicators related to Gaotu Techedu's liquidity, profitability, solvency, and operating efficiency, Gaotu Techedu DRC is not in a good financial situation at this time. It has a very high probability of going through financial hardship in January.Gaotu Techedu Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gaotu Techedu has an asset utilization ratio of 54.7 percent. This implies that the Company is making $0.55 for each dollar of assets. An increasing asset utilization means that Gaotu Techedu DRC is more efficient with each dollar of assets it utilizes for everyday operations.Gaotu Techedu Ownership Allocation
Gaotu Techedu DRC has a total of 148.78 Million outstanding shares. Gaotu Techedu retains 7.57 (percent) of its outstanding shares held by insiders and 28.52 (percent) owned by outside corporations. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Gaotu Techedu Profitability Analysis
The company reported the previous year's revenue of 2.96 B. Net Loss for the year was (7.3 M) with profit before overhead, payroll, taxes, and interest of 1.8 B.About Gaotu Techedu Valuation
The stock valuation mechanism determines Gaotu Techedu's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Gaotu Techedu DRC based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gaotu Techedu. We calculate exposure to Gaotu Techedu's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Gaotu Techedu's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.2 B | 2.4 B | |
| Operating Profit Margin | (0.05) | (0.05) | |
| Gross Profit Margin | 0.73 | 0.57 |
Gaotu Techedu Growth Indicators
Investing in growth stocks can be very risky. If the company such as Gaotu Techedu does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 260.6 M | |
| Quarterly Earnings Growth Y O Y | 1.032 | |
| Forward Price Earnings | 526.3158 |
Gaotu Techedu Current Valuation Indicators
Gaotu Techedu's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Gaotu Techedu's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Gaotu Techedu, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Gaotu Techedu's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Gaotu Techedu's worth.Additional Tools for Gaotu Stock Analysis
When running Gaotu Techedu's price analysis, check to measure Gaotu Techedu's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gaotu Techedu is operating at the current time. Most of Gaotu Techedu's value examination focuses on studying past and present price action to predict the probability of Gaotu Techedu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gaotu Techedu's price. Additionally, you may evaluate how the addition of Gaotu Techedu to your portfolios can decrease your overall portfolio volatility.