With 307% revenue growth and 64% gross profit margin, GSX Techedu (GSX) will impress most market participants. Besides, the company’s business model is very scalable, and the CEO brings expertise from a top position at a significant competitor. The only issues are the stock price and the total market capitalization. The company expects to have an enterprise value of $2.422 billion, which is too expensive.
Source: S-1
Source: S-1
Very Scalable Business Model
Founded in 2014, GSX Techedu offers online K-12 courses for primary and secondary grades. The company also provides foreign language