Chegg Valuation
0CG Stock | EUR 2.17 0.06 2.84% |
Based on Macroaxis valuation methodology, the firm appears to be overvalued. Chegg Inc shows a prevailing Real Value of 1.65 per share. The current price of the firm is 2.17. Our model approximates the value of Chegg Inc from analyzing the firm fundamentals such as return on equity of 0.24, and Profit Margin of 0.35 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Chegg's price fluctuation is dangerous at this time. Calculation of the real value of Chegg Inc is based on 3 months time horizon. Increasing Chegg's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Chegg stock is determined by what a typical buyer is willing to pay for full or partial control of Chegg Inc. Since Chegg is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Chegg Stock. However, Chegg's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. Historical | Market 2.17 | Real 1.65 | Hype 2.17 | Naive 2.42 |
The real value of Chegg Stock, also known as its intrinsic value, is the underlying worth of Chegg Inc Company, which is reflected in its stock price. It is based on Chegg's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Chegg's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Chegg Inc helps investors to forecast how Chegg stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Chegg more accurately as focusing exclusively on Chegg's fundamentals will not take into account other important factors: Chegg Total Value Analysis
Chegg Inc is presently estimated to have takeover price of 3.67 B with market capitalization of 1.89 B, debt of 1.19 B, and cash on hands of 1.75 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Chegg fundamentals before making investing decisions based on enterprise value of the companyTakeover Price | Market Cap | Debt Obligations | Cash |
3.67 B | 1.89 B | 1.19 B | 1.75 B |
Chegg Investor Information
About 95.0% of the company shares are owned by institutions such as pension funds. The book value of Chegg was presently reported as 8.83. The company has Price/Earnings To Growth (PEG) ratio of 0.96. Chegg Inc had not issued any dividends in recent years. Based on the key indicators obtained from Chegg's historical financial statements, Chegg Inc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Chegg Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Chegg implies not a very effective usage of assets in November.Chegg Ownership Allocation
Chegg holds a total of 126.55 Million outstanding shares. The majority of Chegg Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Chegg Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Chegg. Please pay attention to any change in the institutional holdings of Chegg Inc as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Chegg Profitability Analysis
The company reported the revenue of 766.9 M. Net Income was 266.64 M with profit before overhead, payroll, taxes, and interest of 569.5 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Chegg's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Chegg and how it compares across the competition.
About Chegg Valuation
The stock valuation mechanism determines Chegg's current worth on a weekly basis. Our valuation model uses a comparative analysis of Chegg. We calculate exposure to Chegg's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Chegg's related companies.Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them to learn their course materials, succeed in their classes, and save money on required materials. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California. CHEGG INC operates under Education Training Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2431 people.
8 Steps to conduct Chegg's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Chegg's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Chegg's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Chegg's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Chegg's revenue streams: Identify Chegg's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Chegg's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Chegg's growth potential: Evaluate Chegg's management, business model, and growth potential.
- Determine Chegg's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Chegg's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Chegg Stock analysis
When running Chegg's price analysis, check to measure Chegg's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chegg is operating at the current time. Most of Chegg's value examination focuses on studying past and present price action to predict the probability of Chegg's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chegg's price. Additionally, you may evaluate how the addition of Chegg to your portfolios can decrease your overall portfolio volatility.
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