Four Seasons Education (Cayman)FEDU 62 WACC % is 6.08% as of Jun. 27, 2026, which is 51% above its 10-year median of 4.02. GuruFocus rates FEDU with a GF Score™ of 62/100 and a GF Value™ of $18.54 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 271 Education companies, Four Seasons Education (Cayman) ranks better than 60.89% on this metric.
As of today (2026-06-27), Four Seasons Education (Cayman)'s weighted average cost of capital is 6.08%%. Four Seasons Education (Cayman)'s ROIC % is 1.29% (calculated using TTM income statement data).
Four Seasons Education (Cayman) earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Four Seasons Education (Cayman) (NYSE:FEDU) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % 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, Four Seasons Education (Cayman)'s weighted average cost of capital is 6.08%%. Four Seasons Education (Cayman)'s ROIC % is 1.29% (calculated using TTM income statement data).
Four Seasons Education (Cayman) earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Four Seasons Education (Cayman) WACC % 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.
For the Education & Training Services subindustry, Four Seasons Education (Cayman)'s WACC %, along with its competitors' market caps and WACC % 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.
Four Seasons Education (Cayman) WACC % vs Education Industry
For the Education industry and Consumer Defensive sector, Four Seasons Education (Cayman)'s WACC % distribution charts can be found below:
* The bar in red indicates where Four Seasons Education (Cayman)'s WACC % falls into.
Four Seasons Education (Cayman) WACC % Calculation
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Four Seasons Education (Cayman)'s market capitalization (E) is $23.745 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Feb. 2026, Four Seasons Education (Cayman)'s latest one-year semi-annual average Book Value of Debt (D) is $14.0637 Mil.
a) weight of equity = E / (E + D) = 23.745 / (23.745 + 14.0637) = 0.628
b) weight of debt = D / (E + D) = 14.0637 / (23.745 + 14.0637) = 0.372
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.376%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Four Seasons Education (Cayman)'s beta is 0.8841.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.376% + 0.8841 * 6% = 9.6806%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Feb. 2026, Four Seasons Education (Cayman)'s interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $14.0637 Mil.
Cost of Debt = -0 / 14.0637 = 0%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0.086 / 4.232 = 2.03%.
* 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.
Four Seasons Education (Cayman) (FEDU) has a WACC % of 6.08% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Four Seasons Education (Cayman) and its competitors. This is 51% above median its historical median of 4.02. Over the past decade, Four Seasons Education (Cayman)'s WACC % has ranged from 0.97 to 8.87. According to the industry distribution chart, Four Seasons Education (Cayman) ranks #106 out of 271 companies in the Education industry, placing it in the top 39.1%.
Is Four Seasons Education (Cayman)'s WACC % too high?
Four Seasons Education (Cayman)'s current WACC % of 6.08% is 51% above median its 10-year median of 4.02. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 8.87. The Education industry median WACC % is 8.00. Four Seasons Education (Cayman)'s value of 6.08% is 24% below this industry median. Based on the distribution chart, Four Seasons Education (Cayman) ranks #106 out of 271 companies in the Education industry, which is above the industry midpoint. Overall, Four Seasons Education (Cayman) has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Four Seasons Education (Cayman)'s WACC % compare to LMMY and EDTK?
According to the Education industry distribution chart, Four Seasons Education (Cayman) ranks #106 out of 271 companies for WACC %. This puts Four Seasons Education (Cayman) in the upper half of its industry. The industry median WACC % is 8.00. Four Seasons Education (Cayman)'s value of 6.08% is 24% below this benchmark. Historically, Four Seasons Education (Cayman)'s own WACC % has ranged from 0.97 to 8.87 over the past decade. While the company's 10-year median is 4.02 vs. the industry median of 8.00, Four Seasons Education (Cayman) has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Education company?
The median WACC % among Education companies is 8.00, based on 271 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Four Seasons Education (Cayman)'s current WACC % of 6.08% is 24% 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Four Seasons Education (Cayman) and its competitors. For the Education industry, the median WACC % is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Four Seasons Education (Cayman)'s current WACC % is 6.08%, which is 51% above median its own 10-year median of 4.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Four Seasons Education (Cayman) stock overvalued right now?
Based on GuruFocus' analysis, Four Seasons Education (Cayman) (FEDU) is currently considered Possible Value Trap. The stock's GF Value™ is $18.54, compared to a current price of $10.50 — trading 43.4% below its estimated fair value. The current WACC % is 6.08%, which is 51% above median its 10-year median of 4.02 and 24% below the Education industry median of 8.00. Four Seasons Education (Cayman)'s overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Four Seasons Education (Cayman) (FEDU), the current WACC % is 6.08% as of Jun. 27, 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 Four Seasons Education (Cayman) (FEDU) Overvalued in 2026?
Based on GuruFocus' analysis, Four Seasons Education (Cayman) stock appears to be undervalued.
The current stock price of $10.50 is trading 43.4% below its estimated GF Value™ of $18.54.
GuruFocus considers Four Seasons Education (Cayman) to be Possible Value Trap.
Key valuation signals for FEDU:
WACC %: 6.08% (51% above median its 10-year median of 4.02)
GF Value™: $18.54 vs. price of $10.50 (43.4% below fair value)
Industry Position: 24% below the Education median (#106 of 271)
No single metric tells the full story. See the FEDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Four Seasons Education (Cayman) Business Description
Four Seasons Education (Cayman) Inc is a service provider of both tourism and education-related services in China. Its program, service, and product offerings mainly consist of enrichment learning programs, school-based tutoring product solutions, and training programs for teachers, study camps and learning trips for students, and travel agency services for all age groups. The Company provides a wide variety of learning and tourism services and is committed to maximizing a learner's potential through technology and content capabilities. The Group operates through three segments: Learning Services, which generates maximum revenue, Tourism Services, and Learning Technology and Content Solutions. The Group mainly operates in the PRC.
62GF Score
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