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Is this Large Market Cap Stock target price reasonable for New Oriental Education & Technology Group Inc. (NYSE:EDU)?

The company in question is, New Oriental Education & Technology Group Inc. (NYSE:EDU) currently with a stock price of 47.09 (2.68% today). The market cap for New Oriental Education & Technology Group Inc. is 7270.64, and is in the sector Services, and Education & Training Services industry. The target price for New Oriental Education & Technology Group Inc. is 49. Currently New Oriental Education & Technology Group Inc. is trading with a P/E of 32.07, and a forward P/E of 20.8. Average volume for New Oriental Education & Technology Group Inc. is 1229.12 and so far today it is 552442.

Performance in the last year for New Oriental Education & Technology Group Inc. has been 107.23%. For EPS growth, New Oriental Education & Technology Group Inc. has seen a growth of 16.40%, and is looking to grow in the next year to 22.64%. More long term stats show that EPS growth has been 17.30% over the last five years and could be 18.15% for the next five years. New Oriental Education & Technology Group Inc. has seen sales growth quarter over quarter at 20.10%, with EPS growth quarter over quarter at 11.80%. The 20-day simple moving average is 6.56%, with the 200-day simple moving average coming to 22.53%.

Since the IPO date for New Oriental Education & Technology Group Inc. on the 9/15/2006, New Oriental Education & Technology Group Inc. has seen performance year to date to be 46.19%. With New Oriental Education & Technology Group Inc. trading at 47.09, the dividend yield is *TBA, and the EPS is 1.43.

So could New Oriental Education & Technology Group Inc., be undervalued? Well as said before P/E is 32.07. The PEG is 1.77, P/S is 4.92 and the P/B is at 5.12. The P/cash is 4.5, with P/free cash flow at *TBA.

New Oriental Education & Technology Group Inc. ability to deal with debt shows that the current ratio is 2, and the quick ratio is 2. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, New Oriental Education & Technology Group Inc. has a gross margin of 58.40%, an operating margin of 13.50% and a profit margin of 15.20%.Payout ratio for New Oriental Education & Technology Group Inc. is 27.90%. Return on assets come to 10.40% with return on investment coming to 11.50%.

Insider ownership for New Oriental Education & Technology Group Inc., is at 0.20% and institutional ownership comes to 89.40%. Outstanding shares are at 158.54. While shares float is 118.86. The float short is currently 4.24%, and short ratio is 4.1.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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