Chegg, Inc.

NYSE:CHGG Stock Report

Market Cap: US$209.7m

Chegg Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 CHGG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHGG ($2.01) is trading below our estimate of fair value ($5.7)

Significantly Below Fair Value: CHGG is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As CHGG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CHGG. This is calculated by dividing CHGG's market cap by their current revenue.
What is CHGG's PS Ratio?
PS Ratio0.3x
SalesUS$662.08m
Market CapUS$209.66m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CHGG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
VSTA Vasta Platform
0.8x12.8%US$202.8m
NRDY Nerdy
0.8x6.4%US$252.5m
STG Sunlands Technology Group
0.3xn/aUS$89.1m
QSG QuantaSing Group
0.3x3.8%US$143.1m
CHGG Chegg
0.3x-15.2%US$209.7m

Price-To-Sales vs Peers: CHGG is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

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

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
WW WW International
0.1x-3.7%US$83.06m
MYND Mynd.ai
0.2xn/aUS$70.30m
BEDU Bright Scholar Education Holdings
0.2xn/aUS$54.40m
BODI Beachbody Company
0.09x-12.9%US$42.65m
CHGG 0.3xIndustry Avg. 1.3xNo. of Companies13PS012345+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CHGG is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Consumer Services industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is CHGG'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.

CHGG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: CHGG is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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 CHGG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$2.01
US$1.86
-7.5%
29.5%US$3.00US$1.40n/a6
Nov ’25US$1.63
US$3.39
+108.2%
49.2%US$7.00US$2.00n/a7
Oct ’25US$1.82
US$3.82
+110.0%
47.3%US$7.00US$2.00n/a7
Sep ’25US$2.16
US$3.82
+76.9%
47.3%US$7.00US$2.00n/a7
Aug ’25US$3.18
US$5.11
+60.6%
37.9%US$7.00US$2.50n/a7
Jul ’25US$2.99
US$6.17
+106.2%
31.7%US$8.50US$2.50n/a9
Jun ’25US$3.83
US$7.20
+88.0%
21.1%US$10.00US$4.00n/a10
May ’25US$5.38
US$7.20
+33.8%
21.1%US$10.00US$4.00n/a10
Apr ’25US$7.22
US$9.53
+32.0%
17.0%US$13.00US$7.00n/a10
Mar ’25US$9.04
US$9.66
+6.9%
16.6%US$13.00US$7.00n/a11
Feb ’25US$9.85
US$10.39
+5.5%
15.9%US$13.00US$8.00n/a12
Jan ’25US$11.36
US$10.31
-9.3%
14.4%US$13.00US$8.00n/a12
Dec ’24US$10.23
US$10.23
-0.05%
14.4%US$13.00US$8.00n/a12
Nov ’24US$7.50
US$10.46
+39.4%
14.8%US$13.00US$8.00US$1.6312
Oct ’24US$8.92
US$13.46
+50.9%
18.2%US$18.00US$10.00US$1.8212
Sep ’24US$10.64
US$13.77
+29.4%
16.8%US$18.00US$11.00US$2.1611
Aug ’24US$10.34
US$13.14
+27.0%
20.3%US$18.00US$10.00US$3.1811
Jul ’24US$8.88
US$13.50
+52.0%
18.3%US$18.00US$11.00US$2.9911
Jun ’24US$9.02
US$14.00
+55.2%
19.7%US$18.00US$11.00US$3.8311
May ’24US$17.60
US$20.33
+15.5%
13.8%US$25.00US$17.00US$5.3812
Apr ’24US$16.30
US$19.92
+22.2%
12.2%US$25.00US$17.00US$7.2212
Mar ’24US$15.51
US$19.92
+28.4%
12.2%US$25.00US$17.00US$9.0412
Feb ’24US$20.95
US$27.74
+32.4%
16.1%US$35.00US$18.00US$9.8513
Jan ’24US$25.27
US$27.25
+7.9%
15.4%US$35.00US$18.00US$11.3613
Dec ’23US$29.59
US$26.18
-11.5%
13.7%US$32.00US$18.00US$10.2313
Nov ’23US$21.11
US$23.91
+13.3%
16.7%US$30.00US$15.00US$7.5013

Analyst Forecast: Target price is lower than the current share price.

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