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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.
Gaotu Techedu's Net-Net Working Capital for the quarter that ended in Mar. 2026 was €-0.81.
The industry rank for Gaotu Techedu's Net-Net Working Capital or its related term are showing as below:
FRA:18WA's Price-to-Net-Net-Working-Capital is not ranked *
in the Education industry.
Industry Median: 5.19 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Gaotu Techedu (FRA:18WA) 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.
Gaotu Techedu Net-Net Working Capital Related Terms
Gaotu Techedu Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Gaotu Techedu's Net-Net Working Capital 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.
FRA:18WA vs JDZG, FC, KLC: Net-Net Working Capital Comparison
For the Education & Training Services subindustry, Gaotu Techedu'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.
Gaotu Techedu Price-to-Net-Net-Working-Capital vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu'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 €-0.81 mean?
Gaotu Techedu (FRA:18WA) has a Net-Net Working Capital of €-0.81 as of Mar. 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 Gaotu Techedu According to the industry distribution chart, Gaotu Techedu ranks #999999 out of 93 companies in the Education industry.
Is Gaotu Techedu's Net-Net Working Capital too high?
Gaotu Techedu's current Net-Net Working Capital is €-0.81. Based on the distribution chart, Gaotu Techedu ranks #999999 out of 93 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Gaotu Techedu has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Gaotu Techedu's Net-Net Working Capital compare to JDZG and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #999999 out of 93 companies for Net-Net Working Capital. This places Gaotu Techedu in the lower half of its industry. The industry median Net-Net Working Capital is 5.19. 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 5.19, 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. 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 Gaotu Techedu For the Education industry, the median Net-Net Working Capital is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current Net-Net Working Capital is €-0.81. 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?
Gaotu Techedu (FRA:18WA) has a current Net-Net Working Capital of €-0.81. The stock's GF Value™ is €4.90, compared to a current price of €1.37 — trading 72% below its estimated fair value. The current Net-Net Working Capital is €-0.81. Gaotu Techedu's overall GF Score™ is 66/100 with 2 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 Gaotu Techedu (FRA:18WA), the current Net-Net Working Capital is €-0.81 as of Mar. 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 (FRA:18WA) Overvalued in 2026?
Based on GuruFocus' analysis, Gaotu Techedu stock appears to be undervalued.
The current stock price of €1.37 is trading 72% below its estimated GF Value™ of €4.90.
Key valuation signals for FRA:18WA:
Net-Net Working Capital: €-0.81
GF Value™: €4.90 vs. price of €1.37 (72% below fair value)
No single metric tells the full story. See the FRA:18WA 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.
66GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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