Chegg, Inc. (CHGG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-1359.0%

-$8.89

vs $0.71 price

Levered DCF

$10.70

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

-4.67

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-0.97×	-0.2×	-30.7×	12.09×	-2,980.58×	-1,821.17×	-470.35×	-218.62×
P/B	0.84×	0.86×	1.4×	2.89×	3.92×	18.58×	9.06×	7.84×
P/S	0.27×	0.27×	1.85×	4.2×	5.59×	17.58×	11×	10.02×
EV / EBITDA	-7.31×	-0.84×	9.86×	19.64×	59.7×	96.81×	74.15×	152.03×
Gross margin	60.2%	70.7%	68.5%	74.3%	67.2%	68.1%	77.6%	75.1%
Operating margin	-16.8%	-119.4%	-9.5%	1.2%	10.1%	8.8%	4.3%	-1.9%
Net margin	-27.4%	-135.5%	2.5%	34.8%	-0.2%	-1.0%	-2.3%	-4.6%
Current ratio	0.86×	0.83×	0.8×	8.24×	14.19×	10.78×	11.31×	8.29×
Debt / equity	0.7×	2.61×	0.66×	1.08×	1.53×	2.51×	1.84×	0.69×
Interest coverage	-107.32×	-284.6×	-17.95×	1.48×	11.33×	0.86×	0.4×	-0.55×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-86.5%	-433.8%	1.9%	23.9%	-0.1%	-1.0%	-1.9%	-3.6%
Return on invested capital	-33.2%	-105.4%	-1.6%	0.4%	-0.7%	2.6%	1.3%	-0.9%
Return on assets	-37.4%	-96.3%	1.1%	10.8%	-0.0%	-0.3%	-0.6%	-2.0%
Free cash flow yield	-12.6%	30.2%	12.3%	4.7%	4.1%	1.4%	1.6%	1.4%
Earnings yield	-103.5%	-503.3%	1.4%	8.3%	-0.0%	-0.1%	-0.2%	-0.5%
Enterprise value	$153M	$509.3M	$1.8B	$4B	$5.2B	$12.4B	$5.1B	$3.1B
Net debt / EBITDA	-2.54×	-0.56×	2.66×	3.65×	9.72×	8.24×	7.82×	-4.42×
Cash conversion cycle (days)	7	-17	-30	-12	-9	15	23	-2