Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. New Oriental Education & Technology Group's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 10.37%.
As of today (2026-07-16), New Oriental Education & Technology Group's WACC % is 6.39%. New Oriental Education & Technology Group's ROC % is 9.03% (calculated using TTM income statement data).
New Oriental Education & Technology Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
New Oriental Education & Technology Group (OTCPK:NWOEF) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, New Oriental Education & Technology Group's WACC % is 6.39%. New Oriental Education & Technology Group's ROC % is 9.03% (calculated using TTM income statement data).
New Oriental Education & Technology Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
New Oriental Education & Technology Group ROC % Related Terms
New Oriental Education & Technology Group ROC % 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 ROC % Chart
New Oriental Education & Technology Group Annual Data
Note:
The Operating Income data used here is four times the quarterly (Feb. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (NWOEF) has a ROC % of 10.37% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on New Oriental Education & Technology Group and its competitors.
Is New Oriental Education & Technology Group's ROC % too high?
New Oriental Education & Technology Group's current ROC % is 10.37%. The Education industry median ROC % is 5.04. New Oriental Education & Technology Group's value of 10.37% is 105.8% above this industry median. Overall, New Oriental Education & Technology Group has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does New Oriental Education & Technology Group's ROC % compare to TAL and LAUR?
New Oriental Education & Technology Group's ROC % of 10.37% can be compared against companies in the Education industry. The industry median ROC % is 5.04. New Oriental Education & Technology Group's value of 10.37% is 105.8% 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 ROC % for an Education company?
The median ROC % among Education companies is 5.04, based on 259 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. New Oriental Education & Technology Group's current ROC % of 10.37% is 105.8% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on New Oriental Education & Technology Group and its competitors. For the Education industry, the median ROC % is 5.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Oriental Education & Technology Group's current ROC % is 10.37%. 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 (NWOEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $7.41, compared to a current price of $4.52 — trading 39% below its estimated fair value. The current ROC % is 10.37% and 105.8% above the Education industry median of 5.04. New Oriental Education & Technology Group's overall GF Score™ is 59/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For New Oriental Education & Technology Group (NWOEF), the current ROC % is 10.37% as of Feb. 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 (NWOEF) Overvalued in 2026?
Based on GuruFocus' analysis, New Oriental Education & Technology Group stock appears to be undervalued.
The current stock price of $4.52 is trading 39% below its estimated GF Value™ of $7.41.
GuruFocus considers New Oriental Education & Technology Group to be Significantly Undervalued.
Key valuation signals for NWOEF:
ROC %: 10.37%
GF Value™: $7.41 vs. price of $4.52 (39% below fair value)
Industry Position: 105.8% above the Education median
No single metric tells the full story. See the NWOEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Oriental Education & Technology Group Business Description
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.
59GF Score
Get the complete analysis for NWOEF
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NWOEF has been successfully added to your 
