New Oriental Education & Technology Group saw its stock slip 3.4% to US$56.58, even though the headline number pointed in the opposite emotional direction for many investors. Revenue in the latest quarter reached US$1,529.5m and non GAAP operating income came in at US$110m, which management framed as part of a broader profitability push.

The tension today sits squarely between a premium P/E of 18.9x and a business still delivering earnings growth and higher net profit margins. The price fall looks less like a verdict on collapse and more like a valuation check after a strong run into the print.

Is New Oriental Education & Technology Group trading at a steep discount that current earnings do not fully explain, or is the premium P/E…