Sunlands Technology Group
NYSE: STG · CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES
Updated 2026-06-05
Sunlands Technology Group (STG) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for STG.
Valued
Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.
STG historical valuation range
Where current P/E sits in STG's own 5Y range.
STG intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Standard discounted cash flow models produce unreliable output for unprofitable or near-breakeven companies. Revenue-based multiples such as P/S and EV/Sales, combined with the historical valuation position above, give a more reliable read for this stock.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
STG valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 0.86x
P/S Ratio — History
Current: 0.02x
Is STG overvalued in 2026?
Sunlands Technology Group (STG) currently trades at $3.15 per share with a market capitalization of $46,586,800.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 57/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 0.9x, below its 5-year median of 0.9x.
Looking at its own history, STG is currently trading cheaper than 64% of the last 5Y on P/E. This places it in the 36th percentile of its historical range, a reasonable but unremarkable position.
A standard DCF model does not produce reliable output for STG under current conditions. For unprofitable or near-breakeven companies, revenue-based multiples such as EV/Sales and historical P/S percentile are more informative than intrinsic value calculations.
Balance sheet and operating quality look strong. A Piotroski F-Score of 7/9 points to improving profitability, declining leverage, and healthy operating efficiency.
Bottom line: STG trades at a fair valuation on our framework, with a Smart Value Score of 57/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.
Frequently asked questions
Is STG overvalued?
STG scores 57/100 on our Smart Value Score (Grade C+), a mixed overall profile. A standard DCF is unreliable here given the profitability profile, so valuation leans on revenue-based measures like EV/Sales and the P/S percentile below.
What is STG's fair value?
A standard DCF is unreliable for STG given its current profitability profile. Revenue-based approaches like EV/Sales or the historical P/S percentile are more informative for this stock.
What P/E ratio does STG trade at?
STG trades at a P/E of 0.9x on trailing twelve-month earnings, against a 5-year median of 0.9x. P/E is what you pay per dollar of profit, and sitting below its own median means the stock is cheaper than usual relative to its earnings.
Is STG a buy based on valuation?
Our Smart Value rating for STG is Hold, from a Smart Value Score of 57/100 that blends growth, quality, and valuation. The profile is balanced and best suited to investors who already have a thesis. This is research to inform your decision, not personalized financial advice.
How does STG's valuation compare to its history?
On P/E, STG sits in the 36th percentile of its own 5Y range, below its long-run median relative to where it has traded. A low percentile means today's multiple is near the bottom of its historical band.
What is STG's Smart Value Score?
STG's Smart Value Score is 57/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.