Chegg, Inc.

NYSE:CHGG Stock Report

Market Cap: US$167.9m

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 ($1.64) 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$167.93m

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 Average3.4x
ZSPC zSpace
7.5xn/aUS$182.8m
NAMI Jinxin Technology Holding
5xn/aUS$279.9m
VSTA Vasta Platform
0.8x13.3%US$183.6m
QSG QuantaSing Group
0.2x-0.5%US$103.2m
CHGG Chegg
0.3x-16.7%US$167.9m

Price-To-Sales vs Peers: CHGG is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (3.4x).

Price to Sales Ratio vs Industry

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

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
QSG QuantaSing Group
0.2x-0.5%US$103.25m
WW WW International
0.1x-3.7%US$95.04m
BEDU Bright Scholar Education Holdings
0.2xn/aUS$46.08m
BODI Beachbody Company
0.09x-12.9%US$42.30m
CHGG 0.3xIndustry Avg. 1.2xNo. of Companies15PS012345+
15 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 (1.2x).

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$1.64
US$1.86
+13.3%
29.5%US$3.00US$1.40n/a6
Dec ’25US$2.11
US$1.86
-11.9%
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$8.00US$2.1112
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

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 01:04
End of Day Share Price 2024/12/26 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Chegg, Inc. is covered by 26 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gary PrestopinoBarrington Research Associates, Inc.
Alexander ParisBarrington Research Associates, Inc.
Brett KnoblauchBerenberg