Discounted Cash Flow
17 Education & Technology Group Inc. ADR
—
Audit / VIE / HFCA: Chinese ADR (VIE contractual structure, HFCA Act): the PCAOB must inspect the China-based auditor (e.g. Deloitte/EY China) or the ADRs can be delisted; dividends must be repatriated through the WFOE/VIE and can be blocked. The audit relies on contractual VIE control, not equity, adding structural risk.
Sourced live via DEF 14A beneficial_ownership (edgartools proxy) for US filers and 20-F risk_factors (“controls X% of voting power” + VIE/HFCA) for foreign ADRs — cached 12h. A concentrated holder can overrule the DCF’s minority-basis assumptions on dividends, issuance, and delisting.
Average annual growth rates
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
| Dividends | — | — | — |
Endpoint CAGR (better for long term trend)
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
Projected growth rate
—
Historical inputs (10 fiscal years)
| YEAR | Sales | Net Income | Free Cash Flow | Net Margin | EPS (diluted) |
|---|---|---|---|---|---|
| 2018 | $46.3m | $-97.8m | $-62.5m | -211.2% | $-18.50 |
| 2019 | $60.6m (30.7%) | $-143.7m (-46.9%) | $-101.4m (-62.2%) | -237.2% (-12.4%) | $-27.25 (-47.3%) |
| 2020 | $29.6m (-51.2%) | $-30.6m (78.7%) | $-80.0m (21.1%) | -103.5% (56.4%) | $-44.68 (-64.0%) |
| 2021 | $51.1m (72.8%) | $-33.7m (-10.2%) | $-227.7m (-184.5%) | -66.0% (36.2%) | $-2.92 (93.5%) |
| 2022 | $11.5m (-77.5%) | $-3.8m (88.6%) | $-3.8m (98.3%) | -33.5% (49.3%) | $-0.05 (98.3%) |
| 2023 | $25.5m (122.0%) | $-6.5m (-70.3%) | $-32.2m (-736.9%) | -25.7% (23.3%) | $-0.10 (-100.0%) |
| 2024 | $28.2m (10.7%) | $-3.9m (39.8%) | $-21.0m (34.9%) | -14.0% (45.6%) | $-0.07 (30.0%) |
| 2025 | $15.8m (-44.0%) | $-3.3m (16.5%) | $5.4m (125.9%) | -20.8% (-49.1%) | $-0.04 (42.9%) |
Base FCF: — (latest fiscal year)
Discount rate: % —
Terminal growth: —
Projection period: — years
Alt A decline yrs:
Alt B total yrs:
SEC filings report in CNY. Values above are converted to USD for comparison with the US-listed share price.
Projected cash flows
| Year | Projected cash flow | Discount Factor | Present Value |
|---|
PV of projected FCF: —
Terminal FCF: —
Terminal value: —
PV of terminal value: —
Enterprise value (DCF): —
Net debt deduction: —
Current price: —
—Alternative DCF Models
| Model | Fair Value | Upside | PV(FCFs) | PV(Terminal) | Total Years |
|---|---|---|---|---|---|
| Standard (10yr→TV) | — | — | — | — | 10 + TV |
| Alt A (Gradual Decline) | — | — | — | — | — |
| Alt B (30yr Hard Stop) | — | — | — | N/A | — |
This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.