CHGG Valuation

Chegg Inc

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1.200

+0.07(6.195%)1D

Overview
Forecast
Valuation
Earnings

CHGG Relative Valuation

CHGG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CHGG is overvalued; if below, it's undervalued.

Historical Valuation

Chegg Inc (CHGG) is now in the Overvalued zone, suggesting that its current forward PE ratio of 43.41 is considered Overvalued compared with the five-year average of 24.23. The fair price of Chegg Inc (CHGG) is between 0.14 to 1.09 according to relative valuation methord. Compared to the current price of 1.17 USD , Chegg Inc is Overvalued By 7.5%.

Relative Value

Fair Zone

0.14-1.09

Current Price：1.17

7.5%

Overvalued

43.80

Trailing

Forward

1.95

EV/EBITDA

Chegg Inc. (CHGG) has a current EV/EBITDA of 1.95. The 5-year average EV/EBITDA is 16.61. The thresholds are as follows: Strongly Undervalued below -13.53, Undervalued between -13.53 and 1.54, Fairly Valued between 31.68 and 1.54, Overvalued between 31.68 and 46.75, and Strongly Overvalued above 46.75. The current Forward EV/EBITDA of 1.95 falls within the Historic Trend Line -Fairly Valued range.

82.95

EV/EBIT

Chegg Inc. (CHGG) has a current EV/EBIT of 82.95. The 5-year average EV/EBIT is 22.88. The thresholds are as follows: Strongly Undervalued below -23.03, Undervalued between -23.03 and -0.08, Fairly Valued between 45.83 and -0.08, Overvalued between 45.83 and 68.79, and Strongly Overvalued above 68.79. The current Forward EV/EBIT of 82.95 falls within the Strongly Overvalued range.

0.37

Chegg Inc. (CHGG) has a current PS of 0.37. The 5-year average PS is 5.03. The thresholds are as follows: Strongly Undervalued below -5.75, Undervalued between -5.75 and -0.36, Fairly Valued between 10.42 and -0.36, Overvalued between 10.42 and 15.81, and Strongly Overvalued above 15.81. The current Forward PS of 0.37 falls within the Historic Trend Line -Fairly Valued range.

2.57

P/OCF

Chegg Inc. (CHGG) has a current P/OCF of 2.57. The 5-year average P/OCF is 15.08. The thresholds are as follows: Strongly Undervalued below -16.08, Undervalued between -16.08 and -0.50, Fairly Valued between 30.66 and -0.50, Overvalued between 30.66 and 46.24, and Strongly Overvalued above 46.24. The current Forward P/OCF of 2.57 falls within the Historic Trend Line -Fairly Valued range.

4.78

P/FCF

Chegg Inc. (CHGG) has a current P/FCF of 4.78. The 5-year average P/FCF is 26.57. The thresholds are as follows: Strongly Undervalued below -30.02, Undervalued between -30.02 and -1.73, Fairly Valued between 54.86 and -1.73, Overvalued between 54.86 and 83.16, and Strongly Overvalued above 83.16. The current Forward P/FCF of 4.78 falls within the Historic Trend Line -Fairly Valued range.

Chegg Inc (CHGG) has a current Price-to-Book (P/B) ratio of 0.77. Compared to its 3-year average P/B ratio of 1.25 , the current P/B ratio is approximately -38.63% higher. Relative to its 5-year average P/B ratio of 4.52, the current P/B ratio is about -83.07% higher. Chegg Inc (CHGG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 25.67%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 16.37% , the current FCF yield is about -100.00% lower.

0.77

P/B

Median3y

1.25

Median5y

4.52

26.40

FCF Yield

Median3y

25.67

Median5y

16.37

Competitors Valuation Multiple

The average P/S ratio for CHGG's competitors is 0.74, providing a benchmark for relative valuation. Chegg Inc Corp (CHGG) exhibits a P/S ratio of 0.37, which is -49.68% above the industry average. Given its robust revenue growth of -35.57%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Sunlands Technology Group

Performance Decomposition

Market capitalization of CHGG decreased by 44.44% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.24 to -0.44.

The secondary factor is the Revenue Growth, contributed -35.57%to the performance.

Overall, the performance of CHGG in the past 1 year is driven by P/E Change. Which is more unsustainable.

-35.57%

163.15M → 105.12M

Revenue Growth

-91.03%

-378.12 → -33.93

Margin Expansion

82.16%

-0.24 → -0.44

P/E Change

-44.44%