Update shared on 18 Dec 2025
Fair value Decreased 9.62%Analysts have modestly reduced their price target for Udemy, citing slightly lower revenue growth assumptions and a more conservative future earnings multiple. These factors outweigh the benefit of higher projected profit margins, resulting in an updated fair value estimate of approximately $9.20 from about $10.17 per share.
What's in the News
- Coursera agreed to acquire Udemy in an all stock transaction valued at about $1 billion, with Udemy shareholders to own roughly 41% of the combined company and Udemy shares delisting from Nasdaq upon close (M&A Transaction Announcements).
- Udemy unveiled an AI powered microlearning experience that transforms long form courses into adaptive, short form, instructor validated content delivered across web, mobile, and enterprise environments via its MCP Server (Product Related Announcements).
- Udemy formed a strategic partnership with LG CNS, gaining access to more than 500 enterprise clients in Korea to deliver its AI powered learning platform and accelerate workforce reskilling across key industries (Client Announcements).
- Udemy announced new alliances with Mila, Emtrain, and HSM to expand responsible AI training, compliance and culture content, and access to over 30,000 Udemy Business courses in Brazil, strengthening its global enterprise footprint (Client Announcements, Strategic Alliances).
- Udemy issued 2025 revenue guidance of $787 million to $790 million and completed a share repurchase of about 2.73% of its outstanding stock for $28.32 million (Corporate Guidance, Buyback Tranche Update).
Valuation Changes
- Fair value estimate reduced modestly from about $10.17 to approximately $9.20 per share.
- Discount rate increased slightly from roughly 7.08% to about 7.13%, reflecting a marginally higher perceived risk or required return.
- Revenue growth trimmed from around 4.72% to about 4.37%, indicating slightly more conservative top line assumptions.
- Net profit margin raised meaningfully from roughly 8.22% to about 9.17%, reflecting expectations for improved profitability.
- Future P/E lowered significantly from approximately 27.27x to about 19.36x, implying a more conservative valuation multiple applied to future earnings.
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