Intrinsiqq
TAL Education Group logoTAL Education GroupTAL
$10.46-0.85%
TAL Education Group logo

TAL Education Group

TAL

$10.46

-$0.09 (-0.85%)

⊜ Compare
ProfitabilityUnprofitableGrowthAcceleratingCash FlowHealthy conversionValuationNot cheap
What stands out

The business is unprofitable at the operating level (-0.14% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.

What's changing

Revenue up 51.0% YoY with margins expanding 4.5pp.

What deserves caution

At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration.

Valuation context

25.5x earnings, 7.5x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

-14.7%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$2.15B
EPS$0.41
P/E25.51
P/FCF7.50
EV/EBITDA360.82
FCF Yield13.3%
Div. Yield—
Net Debt/FCF-11.5x
52-Week Range
$8.95$12.91

Profitability & Returns

Revenue (TTM)

$2.25B

▲ +51.0% YoY

Net Income (TTM)

$85M

▲ +2467.5% YoY

Op. Margin

-0.14%

▲ +4.5pp YoY

ROIC

-0.06%

▲ +1.3pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$286M

▲ +48.0% YoY

Op. Cash Flow (TTM)

$398M

▲ +30.0% YoY

Net Debt

-$3.29B

Net Cash Position

Cash & Equiv.

$3.62B

5Y CAGR: -7.2%

5Y CAGR: -15.8%

Continue Research

SourceComputed from the 10-K filed 16 Jun 2025, covering the period ending 28 Feb 2025, as reported to the SEC. Data last refreshed 13 Jun 2026. How this is calculated.

Price from market data, last close as of 22 Oct 2026. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is TAL Education (TAL) overvalued?

At a P/E of 25.5 and a price-to-free-cash-flow of 7.5, TAL Education (TAL) trades below a two-stage DCF intrinsic value of about $40.17 per share, so at $10.46 the stock looks undervalued (284.1% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, TAL Education scores 71/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is TAL Education's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $40.17 per share for TAL, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $30.13. At today's $10.46, that puts the stock about 284.1% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is TAL Education a high-quality business?+

TAL Education scores 71 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a -0.1% operating margin and a -0.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is TAL Education a good stock to buy right now?+

That depends on valuation and quality together, not either alone. TAL currently trades below its estimated intrinsic value and scores 71/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Services-Educational Services

Spot a number that looks wrong? Check it in TAL's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Not financial advice. Analytical data for research only.

Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.