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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
New Oriental Education & Technology Group (NYSE:EDU) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
New Oriental Education & Technology Group Net-Net Working Capital Related Terms
New Oriental Education & Technology Group Net-Net Working Capital Historical Data
* 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.
New Oriental Education & Technology Group Net-Net Working Capital Chart
New Oriental Education & Technology Group Annual Data
EDU vs TAL, LAUR, CVSA: Net-Net Working Capital Comparison
For the Education & Training Services subindustry, New Oriental Education & Technology Group's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
New Oriental Education & Technology Group Price-to-Net-Net-Working-Capital vs Education Industry
For the Education industry and Consumer Defensive sector, New Oriental Education & Technology Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where New Oriental Education & Technology Group's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $2.45 mean?
New Oriental Education & Technology Group (EDU) has a Net-Net Working Capital of $2.45 as of May. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on New Oriental Education & Technology Group According to the industry distribution chart, New Oriental Education & Technology Group ranks #80 out of 93 companies in the Education industry, placing it in the top 86%.
Is New Oriental Education & Technology Group's Net-Net Working Capital too high?
New Oriental Education & Technology Group's current Net-Net Working Capital is $2.45. The Education industry median Net-Net Working Capital is 5.35. New Oriental Education & Technology Group's value of $2.45 is 54.2% below this industry median. Based on the distribution chart, New Oriental Education & Technology Group ranks #80 out of 93 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, New Oriental Education & Technology Group has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does New Oriental Education & Technology Group's Net-Net Working Capital compare to TAL and LAUR?
According to the Education industry distribution chart, New Oriental Education & Technology Group ranks #80 out of 93 companies for Net-Net Working Capital. This places New Oriental Education & Technology Group in the lower half of its industry. The industry median Net-Net Working Capital is 5.35. New Oriental Education & Technology Group's value of $2.45 is 54.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Education company?
The median Net-Net Working Capital among Education companies is 5.35, based on 93 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. New Oriental Education & Technology Group's current Net-Net Working Capital of $2.45 is 54.2% below 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on New Oriental Education & Technology Group For the Education industry, the median Net-Net Working Capital is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Oriental Education & Technology Group's current Net-Net Working Capital is $2.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Oriental Education & Technology Group stock overvalued right now?
Based on GuruFocus' analysis, New Oriental Education & Technology Group (EDU) is currently considered Modestly Undervalued. The stock's GF Value™ is $75.25, compared to a current price of $57.70 — trading 23.3% below its estimated fair value. The current Net-Net Working Capital is $2.45 and 54.2% below the Education industry median of 5.35. New Oriental Education & Technology Group's overall GF Score™ is 87/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For New Oriental Education & Technology Group (EDU), the current Net-Net Working Capital is $2.45 as of May. 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 New Oriental Education & Technology Group (EDU) Overvalued in 2026?
Based on GuruFocus' analysis, New Oriental Education & Technology Group stock appears to be undervalued.
The current stock price of $57.70 is trading 23.3% below its estimated GF Value™ of $75.25.
GuruFocus considers New Oriental Education & Technology Group to be Modestly Undervalued.
Key valuation signals for EDU:
Net-Net Working Capital: $2.45
GF Value™: $75.25 vs. price of $57.70 (23.3% below fair value)
Industry Position: 54.2% below the Education median (#80 of 93)
No single metric tells the full story. See the EDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Oriental Education & Technology is a prominent private education provider in China, offering a wide array of educational services. These include overseas test preparation and consulting services, high school academic tutoring, nonacademic tutoring, and intelligent learning systems and devices. Additionally, the company holds a 57% ownership stake in East Buy, a leading player in the livestreaming e-commerce market.
87GF Score
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