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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
The industry rank for Four Seasons Education (Cayman)'s Intrinsic Value: DCF (FCF Based) or its related term are showing as below:
FEDU's Price-to-DCF (FCF Based) is not ranked *
in the Education industry.
Industry Median: 0.36 * Ranked among companies with meaningful Price-to-DCF (FCF Based) only.
1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.
* 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.
Four Seasons Education (Cayman) Intrinsic Value: DCF (FCF Based) Chart
For the Education & Training Services subindustry, Four Seasons Education (Cayman)'s Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) 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.
Four Seasons Education (Cayman) Price-to-DCF (FCF Based) vs Education Industry
For the Education industry and Consumer Defensive sector, Four Seasons Education (Cayman)'s Price-to-DCF (FCF Based) distribution charts can be found below:
* The bar in red indicates where Four Seasons Education (Cayman)'s Price-to-DCF (FCF Based) falls into.
Four Seasons Education (Cayman) Intrinsic Value: DCF (FCF Based) Calculation
This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.
Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.
GuruFocus DCF calculator is a two-stage model. The default values are defined as:
1. Discount Rate: d = 11% A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.96%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.
2. Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>
Four Seasons Education (Cayman)'s average Free Cash Flow Growth Rate in the past
3 years was 0.00%,
which is less than 5%. GuruFocus defaults => Growth Rate: 5%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. Free Cash Flow per Share: fcf = $1.455. However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
* 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.
What does a Intrinsic Value: DCF (FCF Based) of $16.79 mean?
Four Seasons Education (Cayman) (FEDU) has a Intrinsic Value: DCF (FCF Based) of $16.79 as of Sep. 16, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Four Seasons Education (Cayman) and its competitors. According to the industry distribution chart, Four Seasons Education (Cayman) ranks #999999 out of 24 companies in the Education industry.
Is Four Seasons Education (Cayman)'s Intrinsic Value: DCF (FCF Based) too high?
Four Seasons Education (Cayman)'s current Intrinsic Value: DCF (FCF Based) is $16.79. The Education industry median Intrinsic Value: DCF (FCF Based) is 0.36. Four Seasons Education (Cayman)'s value of $16.79 is 4563.9% above this industry median. Based on the distribution chart, Four Seasons Education (Cayman) ranks #999999 out of 24 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Four Seasons Education (Cayman) has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Four Seasons Education (Cayman)'s Intrinsic Value: DCF (FCF Based) compare to JDZG and PCSV?
According to the Education industry distribution chart, Four Seasons Education (Cayman) ranks #999999 out of 24 companies for Intrinsic Value: DCF (FCF Based). This places Four Seasons Education (Cayman) in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 0.36. Four Seasons Education (Cayman)'s value of $16.79 is 4563.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (FCF Based) for an Education company?
The median Intrinsic Value: DCF (FCF Based) among Education companies is 0.36, based on 24 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (FCF Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Four Seasons Education (Cayman)'s current Intrinsic Value: DCF (FCF Based) of $16.79 is 4563.9% 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 Intrinsic Value: DCF (FCF Based) mean?
A high Intrinsic Value: DCF (FCF Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Four Seasons Education (Cayman) and its competitors. For the Education industry, the median Intrinsic Value: DCF (FCF Based) is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Four Seasons Education (Cayman)'s current Intrinsic Value: DCF (FCF Based) is $16.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Four Seasons Education (Cayman) stock overvalued right now?
Based on GuruFocus' analysis, Four Seasons Education (Cayman) (FEDU) is currently considered Possible Value Trap. The stock's GF Value™ is $19.33, compared to a current price of $10.01 — trading 48.2% below its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is $16.79 and 4563.9% above the Education industry median of 0.36. Four Seasons Education (Cayman)'s overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (FCF Based) calculated?
Intrinsic Value: DCF (FCF Based) is calculated from a company's financial statements. For Four Seasons Education (Cayman) (FEDU), the current Intrinsic Value: DCF (FCF Based) is $16.79 as of Sep. 16, 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 Four Seasons Education (Cayman) (FEDU) Overvalued in 2026?
Based on GuruFocus' analysis, Four Seasons Education (Cayman) stock appears to be undervalued.
The current stock price of $10.01 is trading 48.2% below its estimated GF Value™ of $19.33.
GuruFocus considers Four Seasons Education (Cayman) to be Possible Value Trap.
Key valuation signals for FEDU:
Intrinsic Value: DCF (FCF Based): $16.79
GF Value™: $19.33 vs. price of $10.01 (48.2% below fair value)
Industry Position: 4563.9% above the Education median (#999999 of 24)
No single metric tells the full story. See the FEDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Four Seasons Education (Cayman) Inc is a service provider of both tourism and education-related services in China. Its program, service, and product offerings mainly consist of enrichment learning programs, school-based tutoring product solutions, and training programs for teachers, study camps and learning trips for students, and travel agency services for all age groups. The Company provides a wide variety of learning and tourism services and is committed to maximizing a learner's potential through technology and content capabilities. The Group operates through three segments: Learning Services, which generates maximum revenue, Tourism Services, and Learning Technology and Content Solutions. The Group mainly operates in the PRC.
60GF Score
Get the complete analysis for FEDU
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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