COUR Overview

Stock Performance: Coursera's stock has declined approximately 10.7% year-to-date, with recent focus on its institutional learning solutions and partnerships, which some investors believe indicate long-term growth potential despite current struggles.

Valuation Analysis: The company scores 2 out of 6 on valuation checks, suggesting it is undervalued based on certain metrics, with a Discounted Cash Flow analysis indicating a 57.4% discount from its intrinsic value of $17.78 per share.

Price to Sales Ratio: Coursera's price to sales ratio of 1.70x is above industry averages, indicating it may be overvalued compared to its fair ratio of 1.15x, which reflects its growth outlook and risk factors.

Narrative Framework: The article introduces a Narrative framework for investors to connect their assumptions about Coursera's future growth and profitability to a structured financial forecast, aiding in determining the stock's fair value.

Internet Stocks Performance: Internet stocks are struggling as they lagged behind the S&P 500 and Russell 2000 in 2025 due to operational missteps, increased competition from generative AI, and inconsistent margins, despite a stable macroeconomic environment.

2026 Outlook on AI Monetization: Analysts emphasize that for internet companies to maintain valuations in 2026, they must show significant progress in AI monetization and profitability, alongside improved execution.

Stock-Specific Insights: JP Morgan's analyst Bryan M. Smilek rates Duolingo and Coursera as Overweight, citing potential for growth, while Etsy and Udemy are rated Neutral, and Nerdy Inc. and Chegg are Underweight due to negative sentiment and performance concerns.

AI Integration in Education: The integration of AI in education is expected to diversify traffic sources and enhance learning products, with companies that leverage enterprise tech and proprietary content being better positioned for success in this shift.