2U Valuation

Is TWOU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TWOU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate TWOU's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TWOU's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for TWOU?

Other financial metrics that can be useful for relative valuation.

TWOU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA7.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does TWOU's PS Ratio compare to its peers?

The above table shows the PS ratio for TWOU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
EXDW Exceed World
0.7xn/aUS$16.7m
TCTM TCTM Kids IT Education
0.1xn/aUS$19.1m
PCSV PCS Edventures!
2.8xn/aUS$27.4m
AACG ATA Creativity Global
0.9xn/aUS$28.3m
0.02x-0.9%US$20.6m

Price-To-Sales vs Peers: TWOU is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (1.1x).


Price to Earnings Ratio vs Industry

How does TWOU's PE Ratio compare vs other companies in the US Consumer Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.7%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.7%
n/an/an/a
No more companies

Price-To-Sales vs Industry: TWOU is good value based on its Price-To-Sales Ratio (0x) compared to the US Consumer Services industry average (1.3x).


Price to Sales Ratio vs Fair Ratio

What is TWOU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TWOU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.02x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: TWOU is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TWOU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$0.27
US$1.13
+319.0%
33.3%US$1.50US$0.75n/a2
Apr ’25US$0.41
US$1.25
+205.4%
20.0%US$1.50US$1.00n/a2
Mar ’25US$0.43
US$1.25
+188.5%
20.0%US$1.50US$1.00n/a2
Feb ’25US$0.86
US$3.32
+284.2%
81.2%US$8.60US$1.50n/a5
Jan ’25US$1.23
US$3.42
+178.0%
77.1%US$8.60US$1.50n/a5
Dec ’24US$1.00
US$3.42
+242.0%
77.1%US$8.60US$1.50n/a5
Nov ’24US$2.02
US$7.11
+252.1%
69.7%US$19.00US$3.00n/a8
Oct ’24US$2.47
US$7.49
+203.2%
59.1%US$19.00US$4.00n/a9
Sep ’24US$3.22
US$7.34
+128.0%
57.6%US$19.00US$4.00n/a10
Aug ’24US$4.44
US$9.67
+117.9%
41.2%US$19.00US$6.00n/a11
Jul ’24US$4.03
US$9.95
+146.8%
39.2%US$19.00US$6.00n/a11
Jun ’24US$4.03
US$9.95
+146.8%
39.2%US$19.00US$6.00n/a11
May ’24US$4.70
US$10.22
+117.4%
36.3%US$19.00US$6.00US$0.2511
Apr ’24US$6.85
US$12.00
+75.2%
24.6%US$19.00US$9.00US$0.4111
Mar ’24US$8.64
US$12.34
+42.8%
21.3%US$19.00US$9.50US$0.4312
Feb ’24US$9.24
US$10.29
+11.4%
33.2%US$19.00US$7.00US$0.8612
Jan ’24US$6.27
US$10.45
+66.7%
34.0%US$19.00US$7.00US$1.2312
Dec ’23US$8.33
US$10.45
+25.5%
34.0%US$19.00US$7.00US$1.0012
Nov ’23US$6.23
US$12.05
+93.3%
28.8%US$19.00US$8.00US$2.0211
Oct ’23US$6.25
US$14.14
+126.2%
25.0%US$20.00US$8.00US$2.4711
Sep ’23US$7.17
US$14.14
+97.2%
25.0%US$20.00US$8.00US$3.2211
Aug ’23US$9.28
US$16.05
+72.9%
51.2%US$40.00US$8.00US$4.4411
Jul ’23US$12.25
US$17.73
+44.7%
43.9%US$40.00US$9.00US$4.0311
Jun ’23US$8.79
US$17.73
+101.7%
43.9%US$40.00US$9.00US$4.0311
May ’23US$9.98
US$22.42
+124.6%
41.9%US$50.00US$12.00US$4.7012

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.