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Valued as a mature, profitable company: Discounted cash flow.
ACCE opinion17 Education & Technology Group Inc. American Depositary Shares (YQ)
Fair value
Not available
ACCE price target
$3.30
Rating
Not rated
Horizon
12 months
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $3.18 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
65
out of 100
Analysts
100% buy
1 covering
P/E
0.0x
forward 6.8x
1-year return
-49.0%
Dividend yield
0.00%
17 Education & Technology Group Inc. American Depositary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
17 Education & Technology Group sells online and offline English-language and test-prep courses to students in China, with a small $34M market cap and a gross margin of 61.2%. The bull case rests on revenue growth of 254.6%, which suggests the business has rebuilt from a much smaller base, and on a forward P/E of 6.8 against a trailing P/E that is not meaningful because earnings are negative. The obvious question is whether that growth is durable or a rebound from distressed levels, since the operating margin is still slightly negative at -0.7% and ROE sits at -37.6%. The stock is not in any index, which limits passive demand, and the balance sheet and China regulatory exposure need checking before anyone takes the forward multiple at face value.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Negative margins and ROE
Net margin is -46.6% and ROE is -37.6%, with operating margin at -0.7%. Earnings growth is reported as 0.0%. The positive FCF of $30M against a $34M market cap needs checking against these losses.
moderate
Revenue collapse over five years
Five-year revenue CAGR is -39.7%, while the latest year shows +254.6% growth. The recent jump may reflect a small base, so the trend is not yet established.
moderate
Quarterly revenue reported at zero
QoQ growth is listed as -100.0%, which would mean quarterly revenue fell to nothing. This needs verification against the filings before drawing conclusions.
AI research notes
AI-assisted·How I use AIWritten Oct 15, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 254.6% year over year in the latest 10-Q, a sharp reversal from a shrinking five-year trend.
Free cash flow over the last twelve months was positive at CNY 30M, and the stock's free cash flow yield is 13.4%.
Debt to equity is only 0.05, so the balance sheet carries very little borrowing.
Why it could disappoint
The net margin is -46.6%, meaning the company still loses money on every dollar of sales despite faster revenue growth.
Return on equity of -37.6% and return on invested capital of -40.9% show the business is destroying value for shareholders.
The diluted share count rose 24.8% in the last fiscal year, diluting existing holders' stakes in the company.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Dec 8, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where YQ's valuation models land
Price
$3.18
Model fair valueConfidence: medium
$5.49
Model
Fair value
Upside
Discounted cash flow
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores
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+Quarter-over-quarter institutional position changes
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Compare
Where it sits vs peers
News and Record
Press releases mentioning this company
Recent performance
1 week
-9.1%
1 month
-10.7%
3 months
+44.5%
6 months
+42.6%
YTD
-11.2%
1 year
-49.0%
SEC filings
Recommendation history, last 12 months
Date
Type
New
Previous
Price
15 Oct 2026, 00:00 CEST
ACCE price target
$3.30
first publication
$3.74
Price
-48.7% · 1Y
Ask anything about YQ
Answered from 17 Education & Technology Group Inc. American Depositary Shares fundamentals + recent valuations. Every number shows its source and date.
This stock Peer Peer median weaker → stronger
P/Ebetter than 100% of peers
low 0.0x0.0xhigh 5.6x
ROEbetter than 33% of peers
low -331%-38%high 35%
Div yieldbetter than 100% of peers
low 0.0%0.0%high 0.0%
Peers
Prices Oct 23, 2026
Company
Price
Fair value
vs fair value
P/E
ROE
Quality
Score
YQ17 Education & Technology Group Inc. American Depositary Shares
$3.18
-
-
-
-37.6%
47
65
STGSunlands Technology Group American Depositary Shares representing Class A ordinary shares