Cengage Learning Holdings (CNGO) Fair Value & Analysis
Consumer Defensive · US · Market cap $1.5B
Cengage Learning Holdings
CNGO · US
Fair value as of: Jul 15, 2026
From 10 valuation models · updated 26 days ago
Below-average quality, and screening another 17% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($19.58). The favourable scenario is already priced in.
- Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.
How to read this chart
60‑month range $9.75 – $23.50 · fair‑value band $15.12 – $19.58 · the $23.50 price screens above the $19.58 fair value. Dashed = 300-day average. As of Jul 15, 2026.
Analysis
Cengage Learning Holdings (CNGO) currently trades at $23.50, while our model-based Fair Value estimate is $19.58, implying the stock looks roughly 16.7% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).
Over the trailing twelve months, Cengage Learning Holdings generated revenue of $1.5B at a net margin of -2.2%. Revenue grew 6.8% year over year. Net debt stands at $1.3B. Fundamentals as of Jul 15, 2026
Our scenario range runs from $15.12 (bear case) to $19.58 (bull case); at $23.50, the current price sits above 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 near its 52-week high, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 17% fair-value upside, at -17%, CNGO screens richer 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.
All 10 models by family
Widest divergence: Multiples ($42.00) versus Growth DCF ($1.40). Highest evidence: Rev-Margin DCF (74).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 56
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Cengage Learning Holdings II, Inc., together with its subsidiaries, operates as an education technology company worldwide. The company operates through three segments: Cengage Academic, Cengage Work, and Cengage Select.
Full company description
Cengage Learning Holdings II, Inc., together with its subsidiaries, operates as an education technology company worldwide. The company operates through three segments: Cengage Academic, Cengage Work, and Cengage Select. It offers eTextbooks, a digital version of the textbook; print textbooks and materials; and Cengage Unlimited, a subscription service for digital higher education materials. The company also provides courseware solutions, including MindTap for business and economics, social sciences, trades, and skills; WebAssign for mathematics and physics; Skills Assessment Manager for introductory computing; Cengage NOW for accounting; and Online Web-Based Learning for chemistry. In addition, it offers ed2go, an online learning platform; K-12, public, and academic libraries under the Gale brand, as well as licenses its content for integration within web-based information services; English language curriculum and digital solutions under the NGL brand; educational resources for career-focused beauty and wellness education providers; and literacy materials to K-6 students under the Nelson brand. Further, the company operates Infosec, a cybersecurity education platform comprising Bootcamps, which provides instructor-led, digital course experiences geared for cybersecurity certifications or skill sets; Infosec Skills that offers hands-on training for reskilling and upskilling in the cybersecurity profession; and Infosec IQ, which offers security awareness training for non-technical learners to recognize, avoid, and report cyber-attacks and security incidents. It sells and distributes its products through e-commerce channels, through channel partners, and college bookstores. The company serves higher education, workforce skills, secondary education, English language teaching, and research markets. Cengage Learning Holdings II, Inc. was founded in 1903 and is based in Mason, Ohio.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2019 – FY2025 · reported fiscal years
Cengage Learning Holdings reported revenue of $1.5B in FY2025 versus $1.4B in FY2019, a compound +0.4%/yr. Reported net income was −$114M in FY2025.
CNGO screens 17% overvalued. Compare with New Oriental Education & Technology Group →
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.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
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 15, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| New Oriental Education & Technology Group EDUN | 966.48 MXN | 897.37 MXN | -7% |
| TAL Education Group TAL | $10.24 | $15.60 | +52% |
| Laureate Education, Inc LAUR | $36.45 | $41.45 | +14% |
| Physicswallah Limited PWL | ₹131.59 | ₹14.81 | -89% |
| Grand Canyon Education, Inc LOPE | $149.00 | $152.01 | +2% |
| Covista Inc CVSA | $116.22 | $135.45 | +17% |
| Stride, Inc LRN | $83.39 | $139.45 | +67% |
| Universal Technical Institute, Inc UTI | $40.33 | $21.35 | -47% |
| Perdoceo Education Corporation PRDO | $31.66 | $41.45 | +31% |
| Strategic Education, Inc STRA | $84.18 | $105.48 | +25% |
Compare Cengage Learning Holdings with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Consumer Defensive stocks →
Frequently asked questions
Is Cengage Learning Holdings (CNGO) overvalued or undervalued?
What is the fair value of CNGO?
What is the quality score of CNGO?
What is the revenue of Cengage Learning Holdings (CNGO)?
What is the net profit margin of CNGO?
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.
Track Cengage Learning Holdings and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.