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Gaotu TecheduGOTU +1.87%67 Debt-to-Equity is 0.93 as of Jun. 2026, which is 447% above its 10-year median of 0.17. GuruFocus rates GOTU with a GF Score™ of 67/100 and a GF Value™ of $5.55 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 226 Education companies, Gaotu Techedu ranks worse than 80.09% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Gaotu Techedu's Debt-to-Equity or its related term are showing as below:
GOTU'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.03 Med: 0.17 Max: 4.64
Current: 0.93
During the past 9 years, the highest Debt-to-Equity Ratio of Gaotu Techedu was 4.64. The lowest was 0.03. And the median was 0.17.
GOTU's Debt-to-Equity is ranked worse than 80.09% of 226
companies
in the Education industry
Industry Median: 0.27
vs GOTU: 0.93
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Gaotu Techedu Debt-to-Equity Related Terms
Gaotu Techedu Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Gaotu Techedu's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Education & Training Services subindustry, Gaotu Techedu's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gaotu Techedu Debt-to-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gaotu Techedu (GOTU) has a Debt-to-Equity of 0.93 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Gaotu Techedu and its competitors. This is 447% above median its historical median of 0.17. Over the past decade, Gaotu Techedu's Debt-to-Equity has ranged from 0.03 to 4.64. According to the industry distribution chart, Gaotu Techedu ranks #181 out of 226 companies in the Education industry, placing it in the top 80.1%.
Is Gaotu Techedu's Debt-to-Equity too high?
Gaotu Techedu's current Debt-to-Equity of 0.93 is 447% above median its 10-year median of 0.17. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 4.64. The Education industry median Debt-to-Equity is 0.27. Gaotu Techedu's value of 0.93 is 244.4% above this industry median. Based on the distribution chart, Gaotu Techedu ranks #181 out of 226 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Gaotu Techedu has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's Debt-to-Equity compare to KLC and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #181 out of 226 companies for Debt-to-Equity. This places Gaotu Techedu in the lower half of its industry. The industry median Debt-to-Equity is 0.27. Gaotu Techedu's value of 0.93 is 244.4% above this benchmark. Historically, Gaotu Techedu's own Debt-to-Equity has ranged from 0.03 to 4.64 over the past decade. While the company's 10-year median is 0.17 vs. the industry median of 0.27, Gaotu Techedu has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for an Education company?
The median Debt-to-Equity among Education companies is 0.27, based on 226 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gaotu Techedu's current Debt-to-Equity of 0.93 is 244.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Gaotu Techedu and its competitors. For the Education industry, the median Debt-to-Equity is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current Debt-to-Equity is 0.93, which is 447% above median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaotu Techedu stock overvalued right now?
Based on GuruFocus' analysis, Gaotu Techedu (GOTU) is currently considered Possible Value Trap. The stock's GF Value™ is $5.55, compared to a current price of $2.20 — trading 60.4% below its estimated fair value. The current Debt-to-Equity is 0.93, which is 447% above median its 10-year median of 0.17 and 244.4% above the Education industry median of 0.27. Gaotu Techedu's overall GF Score™ is 67/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Gaotu Techedu (GOTU), the current Debt-to-Equity is 0.93 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gaotu Techedu (GOTU) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of $2.20 is trading 60.4% below its estimated GF Value™ of $5.55.
GuruFocus considers Gaotu Techedu to be Possible Value Trap.
Key valuation signals for GOTU:
Debt-to-Equity: 0.93 (447% above median its 10-year median of 0.17)
GF Value™: $5.55 vs. price of $2.20 (60.4% below fair value)
Industry Position: 244.4% above the Education median (#181 of 226)
No single metric tells the full story. See the GOTU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services. It derives maximum revenue from Learning Services and also from Educational content & digitalized learning products.
67GF Score
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