ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gaotu Techedu's annualized net income for the quarter that ended in Mar. 2026 was €17.3 Mil. Gaotu Techedu's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €153.0 Mil. Therefore, Gaotu Techedu's annualized ROE % for the quarter that ended in Mar. 2026 was 11.32%.
The historical rank and industry rank for Gaotu Techedu's ROE % or its related term are showing as below:
FRA:18WA'
s ROE % Range Over the Past 10 Years
Min: -73.35 Med: -20.7 Max: 29.62
Current: -27.61
During the past 9 years, Gaotu Techedu's highest ROE % was 29.62%. The lowest was -73.35%. And the median was -20.70%.
FRA:18WA's ROE % is ranked worse than 88.08% of 260
companies
in the Education industry
Industry Median: 7.3
vs FRA:18WA: -27.61
Gaotu Techedu (FRA:18WA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Gaotu Techedu ROE % Related Terms
Gaotu Techedu ROE % Historical Data
* Premium members only.
The historical data trend for Gaotu Techedu's ROE % 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.
For the Education & Training Services subindustry, Gaotu Techedu's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Gaotu Techedu's ROE % distribution charts can be found below:
* The bar in red indicates where Gaotu Techedu's ROE % 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 the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Gaotu Techedu (FRA:18WA) has a ROE % of 11.32% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gaotu Techedu and its competitors. According to the industry distribution chart, Gaotu Techedu ranks #229 out of 260 companies in the Education industry, placing it in the top 88.1%.
Is Gaotu Techedu's ROE % too high?
Gaotu Techedu's current ROE % is 11.32%. The Education industry median ROE % is 7.30. Gaotu Techedu's value of 11.32% is 55.1% above this industry median. Based on the distribution chart, Gaotu Techedu ranks #229 out of 260 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 ROE % compare to KLC and FC?
According to the Education industry distribution chart, Gaotu Techedu ranks #229 out of 260 companies for ROE %. This places Gaotu Techedu in the lower half of its industry. The industry median ROE % is 7.30. Gaotu Techedu's value of 11.32% is 55.1% 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 ROE % for an Education company?
The median ROE % among Education companies is 7.30, based on 260 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gaotu Techedu's current ROE % of 11.32% is 55.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gaotu Techedu and its competitors. For the Education industry, the median ROE % is 7.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaotu Techedu's current ROE % is 11.32%. 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 ROE % of 11.32%. 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 ROE % is 11.32% and 55.1% above the Education industry median of 7.30. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Gaotu Techedu (FRA:18WA), the current ROE % is 11.32% 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:
ROE %: 11.32%
GF Value™: €4.57 vs. price of €1.37 (70% below fair value)
Industry Position: 55.1% above the Education median (#229 of 260)
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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