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TAL Education Group
NYSE:TAL

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TAL Education Group
NYSE:TAL
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Price: 10.85 USD 0.74% Market Closed
Market Cap: $6.6B

EV/GP

2
Current
15%
Cheaper
vs 3-y average of 2.3

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2
=
Enterprise Value
$3.2B
/
Gross Profit
$1.7B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2
=
Enterprise Value
$3.2B
/
Gross Profit
$1.7B

Valuation Scenarios

TAL Education Group is trading below its 3-year average

If EV/GP returns to its 3-Year Average (2.3), the stock would be worth $12.74 (17% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+582%
Average Upside
171%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2 $10.85
0%
3-Year Average 2.3 $12.74
+17%
5-Year Average 2 $11.16
+3%
Industry Average 3.6 $19.64
+81%
Country Average 13.6 $73.95
+582%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Lower than 94% of companies in China
Percentile
6th
Based on 6 967 companies
6th percentile
2
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

TAL Education Group
Glance View

TAL Education Group, founded in 2003 and headquartered in Beijing, has experienced a dynamic journey from its humble beginnings to becoming one of the most recognized names in China’s education sector. Established by Zhang Bangxin, TAL initially emerged with the mission to provide supplementary education services to K-12 students. The company quickly capitalized on the heightened demand among Chinese families for additional academic support, driven by the significant pressure on students to excel in exams. TAL’s core offerings include small-class tutoring, personalized premium services, and online educational content, tailored to cater to the diverse needs of its student base. With a robust framework that combines innovative teaching methods and technology, TAL aimed to enhance student engagement and learning outcomes. The company's revenue model is primarily anchored in tuition fees collected from these various educational programs, supported by its extensive network of learning centers across China. Over the years, TAL has adeptly leveraged digital transformation trends by expanding its online platforms to reach a broader audience, a pivot that proved particularly prescient during times when physical attendance was restricted. As China's regulatory landscape continues to evolve, TAL has faced challenges that prompted strategic adjustments, such as diversifying its offerings and focusing on quality, innovation, and compliance. Through a blend of adaptive strategies and a keen understanding of the Chinese education market, TAL Education Group has maintained its relevance and continues to navigate the complexities of operating in a highly competitive and regulated environment.

TAL Intrinsic Value
10.68 USD
Overvaluation 2%
Intrinsic Value
Price $10.85
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