Gaotu Techedu (FRA:18WA) ROCE %: 1.46% (As of Mar. 2026)

What is Gaotu Techedu ROCE %?

Gaotu Techedu FRA:18WA -9.27% 66 ROCE % is 1.46% as of Mar. 2026. GuruFocus rates FRA:18WA with a GF Score™ of 66/100 and a GF Value™ of €4.57. The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Gaotu Techedu's annualized ROCE % for the quarter that ended in Mar. 2026 was 1.46%.

Gaotu Techedu (FRA:18WA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Gaotu Techedu ROCE % Related Terms

Gaotu Techedu ROCE % Historical Data

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The historical data trend for Gaotu Techedu's ROCE % 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.

Gaotu Techedu ROCE % Chart

Gaotu Techedu Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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-64.33

-3.57

-4.33

-39.82

-21.27

Gaotu Techedu Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															5.36	-39.14	-32.78	-23.63	1.46

66GF Score

Gaotu Techedu Inc FRA:18WA

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Gaotu Techedu ROCE % Calculation

Gaotu Techedu's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	-61.01	/	( ( (764.461 - 427.689)	+	(751.722 - 514.773) )	/ 2 )
	=	-61.01	/	( (336.772	+	236.949)	/ 2 )
	=	-61.01	/	286.8605
	=	-21.27 %

Gaotu Techedu's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	3.452	/	( ( (751.722 - 514.773)	+	(691.227 - 454.806) )	/ 2 )
	=	3.452	/	( ( 236.949	+	236.421 )	/ 2 )
	=	3.452	/	236.685
	=	1.46 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 1.46% mean?

Gaotu Techedu (FRA:18WA) has a ROCE % of 1.46% as of Mar. 2026.

Is Gaotu Techedu's ROCE % too high?

Gaotu Techedu's current ROCE % is 1.46%. The Education industry median ROCE % is 8.13. Gaotu Techedu's value of 1.46% is 82% below this industry median. 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 ROCE % compare to KLC and FC?

Gaotu Techedu's ROCE % of 1.46% can be compared against companies in the Education industry. The industry median ROCE % is 8.13. Gaotu Techedu's value of 1.46% is 82% 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 ROCE % for an Education company?

The median ROCE % among Education companies is 8.13, based on 259 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gaotu Techedu's current ROCE % of 1.46% is 82% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Education industry, the median ROCE % is 8.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current ROCE % is 1.46%. 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 ROCE % of 1.46%. The stock's GF Value™ is €4.57, compared to a current price of €1.37 — trading 70% below its estimated fair value. The current ROCE % is 1.46% and 82% below the Education industry median of 8.13. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Gaotu Techedu (FRA:18WA), the current ROCE % is 1.46% 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 70% below its estimated GF Value™ of €4.57.

Key valuation signals for FRA:18WA:

ROCE %: 1.46%
GF Value™: €4.57 vs. price of €1.37 (70% below fair value)
GF Score™: 66/100 with 2 warning signs
Industry Position: 82% below the Education median

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 Business Description

Industry Consumer Defensive Education

Comparable Companies KLC FC COE CHGG LGCY JDZG STG SKIL AACG GNS EDU TAL GHC LAUR CVSA LOPE LRN NSE:PWL HKSE:01797 MH

Other Exchanges GOTU:USA 0A7G:UK

Address 10 Xibeiwang East Road, 5th Floor, Gientech Building, 17 East Zone, Haidian District, Beijing, CHN, 100193

Website https://ir.gaotu.cn

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1.37

Price

€4.57

GF Value

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