Chegg Intrinsic Value Calculation – Daiwa Securities Group Reduces Stake in Chegg,
August 3, 2023
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Daiwa Securities Group Inc. recently announced that they had significantly reduced their stake in Chegg ($NYSE:CHGG), Inc., an American online textbook rental company. Since then, the company has expanded to provide a suite of digital education services to students, including renting and selling textbooks, online tutoring, test prep, and internships, among others. While the exact reason for the reduction is unknown, it is likely due to the fact that Chegg’s stock has been underperforming in recent months. Despite this, the company remains optimistic about their outlook in the future as they continue to expand their digital education offerings.
Price History
On Monday, the CHEGG stock opened at $10.2 but closed at $10.1, a decrease of 0.6% from the prior closing price of 10.2. 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 |
| 752.25 | 263.08 | 28.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chegg. More…
| Operations | Investing | Financing |
| 248.86 | 361.18 | -596.24 |
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 |
| 2.36k | 1.36k | 8.42 |
Key Ratios Snapshot
Some of the financial key ratios for Chegg are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.1% | -20.6% | 14.1% |
| FCF Margin | ROE | ROA |
| 21.0% | 6.2% | 2.8% |
Analysis – Chegg Intrinsic Value Calculation
At GoodWhale, we’re proud to provide analysis of CHEGG‘s fundamentals. After taking into account the company’s financials, our proprietary Valuation Line has calculated an intrinsic value of $54.5 per share for CHEGG. That’s over 81.5% higher than the current share price of $10.1, making it a great buying opportunity for interested investors. If you’re looking for a sound investment, CHEGG is definitely worth considering. More…
Peers
Chegg Inc is an American education technology company based in Santa Clara, California. The company offers digital and physical textbook rentals, online tutoring, and other student services. Chegg is one of the largest online textbook rental companies in the United States. The company has been criticized for its business model, which has been likened to textbook flipping, and for its environmental impact.
Chegg’s competitors include: CognaEducacao SA, Perdoceo Education Corp, Wah Fu Education Group Ltd.
– CognaEducacao SA ($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
Chegg, Inc. is a popular online learning company that provides students with educational services and materials. Recently, the Daiwa Securities Group Inc. has cut its position in Chegg due to a decline in the company’s stock price. Investors should be aware that this move could be an indication of a weaker overall market outlook for Chegg. Therefore, individuals considering investing in Chegg should evaluate the company’s current financial performance and future business prospects before making a decision.
Additionally, investors should take into account the potential risks associated with investing in a volatile technology sector. By taking all of these factors into consideration, investors can make an informed decision when it comes to investing in Chegg.
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