Chegg, Inc (CHGG) Fair Value & Analysis

Consumer Defensive · US · Market cap $118M

Below-average quality, screening 28% undervalued on our models.

What matters now

• Solid quality (45/100) at a price below fair value, the discount is the argument here, not the business quality.
• A fairly wide model range ($0.7600 to $1.58) leaves room in how you read the outcome.
• Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $0.4500 – $90.33 · fair‑value band $0.7600 – $1.58 · the $0.9157 price screens below the $1.17 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Chegg, Inc (CHGG) currently trades at $0.9157, while our model-based Fair Value estimate is $1.17, implying the stock looks roughly 27.8% undervalued today. The Quality Score stands at 45/100 (below-average quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Chegg, Inc generated revenue of $319M at a net margin of -26.9%. Revenue declined 47.9% year over year. It earns a return on equity of -55.9%. Net debt stands at $53.0M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $0.7600 (bear case) to $1.58 (bull case); at $0.9157, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 52% below its 52-week high and 103% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 17% fair-value upside, at 28%, CHGG screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($0.7800) versus Dividend Discount ($0.6300). Highest evidence: Gordon GGM (70).

Key figures & financial health

Quality Score breakdown

About the company

Chegg, Inc. provides a learning platform helping businesses bring new skills to their workforce and giving lifelong learners and students the skills and confidence to succeed in the United States and internationally.

Full company description

Chegg, Inc. provides a learning platform helping businesses bring new skills to their workforce and giving lifelong learners and students the skills and confidence to succeed in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math provides a computational engine to help them understand and solve math problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chegg, Inc reported revenue of $377M in FY2025 versus $776M in FY2021, a compound −16.5%/yr. Reported net income was −$103M in FY2025.

Watch CHGG: get an alert when its fair value changes →

Peer Group

Education & Training Services · 148 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Education & Training Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Explore undervalued stocks

More undervalued Consumer Defensive stocks →

Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.