Chegg Intrinsic Value Calculation – Analysts Give Chegg, a Consensus Rating of ‘Hold’
December 14, 2023
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Chegg ($NYSE:CHGG), Inc. (NYSE: CHGG) is a leading education technology company with a mission to help make learning more accessible and affordable. Recently, analysts have given Chegg, Inc. a consensus rating of “Hold”. This rating indicates that the stock is expected to perform in line with the market. Analysts from various firms have weighed in on Chegg’s performance in the past year. Many of them have noted that Chegg’s expansion into higher education and international markets has been successful, and that its current market is very competitive.
Furthermore, analysts have noted that Chegg’s revenue growth and profitability have been impressive. Analysts have not been as optimistic about Chegg’s future prospects. They have expressed concern that the company may not be able to maintain its current pace of growth and may struggle to compete against other competitors in the education technology market. Investors should consider these concerns when evaluating the stock.
Market Price
On Monday, CHEGG stock opened at $10.6 and closed at $10.7, down by 0.1% from its previous closing price of 10.7. This suggests that analysts are not expecting significant growth in the near future. However, investors should keep in mind that stock prices can be volatile and should make their own decisions based on their own research before investing in the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chegg. More…
| Total Revenues | Net Income | Net Margin |
| 733.5 | 10.37 | -6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chegg. More…
| Operations | Investing | Financing |
| 242.73 | 497.9 | -714.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chegg. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.8k | 771.29 | 8.92 |
Key Ratios Snapshot
Some of the financial key ratios for Chegg are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | -20.6% | 5.3% |
| FCF Margin | ROE | ROA |
| 22.0% | 2.4% | 1.4% |
Analysis – Chegg Intrinsic Value Calculation
At GoodWhale, we have performed an analysis of CHEGG‘s fundamentals. Our proprietary Valuation Line is indicating that the fair value of the CHEGG share is approximately $39.5. However, the current trading price of CHEGG is only at $10.7, which is drastically undervalued by 72.9%. This could be a great opportunity for investors to take advantage of the undervalued stock and purchase CHEGG shares while they are still low. More…
Peers
Chegg Inc is an American education technology company based in Santa Clara, California. The company offers digital and physical textbook rentals, online tutoring, and other student services. Chegg is one of the largest online textbook rental companies in the United States. The company has been criticized for its business model, which has been likened to textbook flipping, and for its environmental impact.
Chegg’s competitors include: CognaEducacao SA, Perdoceo Education Corp, Wah Fu Education Group Ltd.
– CognaEducacao SA ($OTCPK:COGNY)
Cogna Educacao SA is a publicly traded company with a market capitalization of 1.07 billion as of 2022. The company operates in the education sector and provides educational services and products in Brazil and internationally. The company has a return on equity of 2.54%.
– Perdoceo Education Corp ($NASDAQ:PRDO)
Perdoceo Education Corporation is a provider of higher education operating primarily through its two universities, Colorado Technical University and American InterContinental University. The company offers bachelor’s and master’s degrees in a variety of disciplines, including business, computer science, engineering, nursing, and more. Perdoceo Education Corporation is headquartered in Colorado Springs, Colorado.
– Wah Fu Education Group Ltd ($NASDAQ:WAFU)
Wah Fu Education Group Ltd. is a provider of educational services in Mainland China. The Company operates its business through four segments. The Pre-school Education segment offers educational programs and services for children aged three to six. The K-12 Education segment provides educational programs and services for students aged six to 18. The Adult and Other Education segment offers educational programs and services for adults. The International Education segment provides international education programs and services. The Company operates a number of schools, including Wah Fu Kindergarten, Wah Fu Bilingual School, Wah Fu International School and others.
Summary
Investing in Chegg, Inc. is a risky proposition due to the given consensus rating of “Hold” by analysts. Research and analysis is key when deciding to invest in Chegg, Inc., as the stock may be subject to market volatility, liquidity risk, and other factors. Investors should look into the company’s financials, earnings reports, and other factors that may impact stock performance when making their decision.
It is important to understand the risks and rewards of investments in Chegg, Inc. as well as expectations of future returns on the stock. Furthermore due diligence should include staying up to date on the company’s press releases, developments in the sector, and overall market conditions.
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