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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.
The industry rank for China East Education Holdings's Net-Net Working Capital or its related term are showing as below:
FRA:ZX3's Price-to-Net-Net-Working-Capital is not ranked *
in the Education industry.
Industry Median: 5.41 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
China East Education Holdings (FRA:ZX3) 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.
China East Education Holdings Net-Net Working Capital Related Terms
China East Education Holdings 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.
China East Education Holdings Net-Net Working Capital Chart
FRA:ZX3 vs EDU, TAL, LAUR: Net-Net Working Capital Comparison
For the Education & Training Services subindustry, China East Education Holdings'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.
China East Education Holdings Price-to-Net-Net-Working-Capital vs Education Industry
For the Education industry and Consumer Defensive sector, China East Education Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where China East Education Holdings'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 €0.00 mean?
China East Education Holdings (FRA:ZX3) has a Net-Net Working Capital of €0.00 as of Dec. 2025. 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 China East Education Holdings According to the industry distribution chart, China East Education Holdings ranks #999999 out of 91 companies in the Education industry.
Is China East Education Holdings' Net-Net Working Capital too high?
China East Education Holdings' current Net-Net Working Capital is €0.00. Based on the distribution chart, China East Education Holdings ranks #999999 out of 91 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, China East Education Holdings has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China East Education Holdings' Net-Net Working Capital compare to EDU and TAL?
According to the Education industry distribution chart, China East Education Holdings ranks #999999 out of 91 companies for Net-Net Working Capital. This places China East Education Holdings in the lower half of its industry. The industry median Net-Net Working Capital is 5.41. 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 5.41, based on 91 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 China East Education Holdings For the Education industry, the median Net-Net Working Capital is 5.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China East Education Holdings's current Net-Net Working Capital is €0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China East Education Holdings stock overvalued right now?
Based on GuruFocus' analysis, China East Education Holdings (FRA:ZX3) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.42, compared to a current price of €0.49 — trading 17.1% above its estimated fair value. The current Net-Net Working Capital is €0.00. China East Education Holdings' overall GF Score™ is 53/100 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 China East Education Holdings (FRA:ZX3), the current Net-Net Working Capital is €0.00 as of Dec. 2025. 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 China East Education Holdings (FRA:ZX3) Overvalued in 2026?
Based on GuruFocus' analysis, China East Education Holdings stock appears to be overvalued.
The current stock price of €0.49 is trading 17.1% above its estimated GF Value™ of €0.42.
GuruFocus considers China East Education Holdings to be Modestly Overvalued.
Key valuation signals for FRA:ZX3:
Net-Net Working Capital: €0.00
GF Value™: €0.42 vs. price of €0.49 (17.1% above fair value)
No single metric tells the full story. See the FRA:ZX3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China East Education is the largest vocational training education provider in China in terms of average students enrolled. It was founded in 1988 and its business spans four segments: culinary arts, information & internet technology, auto services, and fashion & beauty. The company's on-campus student population exceeded 150,000 as of June 30, 2025. In 2024, China East Education's revenue breakdown by major businesses was 55% in culinary arts, 19% in information & internet technology, 22% in auto services.
53GF 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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