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Groupon, Inc (GRPN) Fair Value & Analysis

Communication Services · US · Market cap $615M

GI Groupon, Inc logo Groupon, Inc GRPN · US
Price$25.03
Fair Value$4.73
Upside-81.1%
Quality40/100
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Weak Growth
Loss-making · -20.8% net margin
Negative equity (buybacks among others) · generates free cash flow
Trails peers (2/12)
Narrow moat 12/100
Evidence: High Range $3.20 – $6.27 Share as image

Fair value as of: Jul 16, 2026

From 14 valuation models · updated 25 days ago

Share price −2.0% over the past month.

Below-average quality, and screening another 81% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($6.27). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range ($3.20 to $6.27) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$51.77 $2.97 Fair Value $4.73 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $2.97 – $51.77 · fair‑value band $3.20 – $6.27 · the $25.03 price screens above the $4.73 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Groupon, Inc (GRPN) currently trades at $25.03, while our model-based Fair Value estimate is $4.73, implying the stock looks roughly 81.1% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Communication Services 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: high).

Over the trailing twelve months, Groupon, Inc generated revenue of $498M at a net margin of -20.8%. It earns a return on equity of -15.2%. Net debt stands at $53.5M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $3.20 (bear case) to $6.27 (bull case); at $25.03, 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 about 42% below its 52-week high and 173% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 2% fair-value upside, at -81%, GRPN 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $11.13 $14.22 $18.48 80
Rev-Margin DCF $6.08 $7.84 $9.99 74
ROIC Compounder $1.02 $1.21 $1.36 72
All 14 models by family
DCF Models
FCF DCF $10.87 $14.16 $18.98 38
5Y Revenue Exit $6.08 $7.59 $9.54 39
5Y EBITDA Exit $8.14 $11.15 $14.76 41
10Y Revenue Exit $8.00 $9.58 $11.26 36
10Y EBITDA Exit $9.24 $11.74 $14.52 37
Earnings-Based
EPV $1.02 $1.21 $1.36 59
Dividend Discount
Gordon GGM $1.80 $2.33 $2.82 70
DDM Multi-Stage $1.80 $2.36 $2.94 61
Multiples
EV/EBIT $4.26 $5.80 $7.33 53
EV/EBITDA $7.13 $9.63 $12.12 54
EV/Revenue $2.76 $4.09 $5.42 43
Growth DCF
Growth DCF $11.13 $14.22 $18.48 80
Rev-Margin DCF $6.08 $7.84 $9.99 74
Economic Profit
ROIC Compounder $1.02 $1.21 $1.36 72

Widest divergence: DCF Models ($11.15) versus Earnings-Based ($1.21). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $498M
Net margin -20.8%
Return on equity -15.2%
Free cash flow $49.9M FY2025
Operating margin -2.8%
EPS (TTM) $-2.57
More key figures
EPS growth (YoY) +109%
Net debt $53.5M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 42 · Market factors (momentum, volatility) 54

Profitability 38
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 72
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 26
Buybacks instead of dilution

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

Groupon, Inc. operates a marketplace that connects consumers to merchants by offering goods and services at a discount in North America and international.

Full company description

Groupon, Inc. operates a marketplace that connects consumers to merchants by offering goods and services at a discount in North America and international. It provides deals in various categories, including beauty and wellness, food and drink, home and automotive services, and online services, as well as various types of experiences and services; and discounted and market rates for hotels, airfare, and package deals, as well as deals on various product lines, such as electronics, sporting goods, jewelry, toys, household items, and apparel. The company offers its deal offerings to customers through websites; search engines; applications and mobile websites, which enable consumers to browse, purchase, manage, and redeem deals on their mobile devices; emails and push notifications; affiliate channels; social and display advertising; and offline marketing. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Groupon, Inc reported revenue of $498M in FY2025 versus $967M in FY2021, a compound −15.3%/yr. Reported net income was −$83.5M in FY2025.

Growth Quality 29/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$498M
Latest YoY
+1.2%
Avg. growth/yr (3Y)
−5.9%
Avg. growth/yr (5Y)
−18.9%
Avg. growth/yr (16Y)
+24.7%
Revenue −15.3%/yr
FY21 $967M
FY22 $599M
FY23 $515M
FY24 $493M
FY25 $498M
Net income
FY21 $119M
FY22 −$238M
FY23 −$55.4M
FY24 −$59.0M
FY25 −$83.5M

GRPN screens 81% overvalued. Compare with Alphabet Inc →

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Cite: Fair Value Calculator (2026). "Groupon, Inc Fair Value". https://www.fairvalue-calculator.com/stock/GRPN

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Internet Content & Information · 151 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.

Quality Score 40 · Bottom 25%
Fair Value upside −81% · Bottom 25%
Return on assets 1% · Below median
Net margin (TTM) -21% · Bottom 25%
Operating margin (TTM) -3% · Below median
Revenue growth 0% · Below median

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/S (TTM) 1.23× · Cheaper than median
P/FCF 12.3× · Pricier than median
EV/EBITDA 74.7× · Pricier than 75% of peers
PEG 14.66× · Pricier than 75% of peers

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.

VALUE 0 · sector 0
FUTURE 0 · sector 31
PAST 0 · sector 10
HEALTH 100 · sector 99
DIVIDEND 0 · sector 43

VALUE 0: the price sits above our fair-value range.

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.

None of the checked exposures detected

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

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Alphabet Inc GOOGL $354.46 $145.14 -59%
Meta Platforms, Inc META $669.21 $534.91 -20%
Tencent Holdings 0700 HK$460.20 HK$467.50 +2%
Spotify Technology S.A SPOT $485.38 $209.56 -57%
Baidu, Inc BIDU $113.30 $451.51 +299%
Reddit, Inc RDDT $195.34 $39.59 -80%
Kuaishou Technology, an investment holding company, 1024 HK$44.70 HK$101.03 +126%
NAVER Corporation 035420 191,300 KRW 231,585 KRW +21%
Tencent Music Entertainment Group 1698 HK$34.74 HK$65.78 +89%
REA Group REA A$149.14 A$88.53 -41%

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Frequently asked questions

Is Groupon, Inc (GRPN) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $4.73 versus a price of $25.03, about −81% (overvalued).
What is the fair value of GRPN?
Our model-based fair value for Groupon, Inc is $4.73 (as of Jul 16, 2026), built from audited fundamentals. The current price is $25.03.
What is the quality score of GRPN?
Groupon, Inc has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Groupon, Inc (GRPN)?
Groupon, Inc reported trailing-twelve-month revenue of about $498M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of GRPN?
The net profit margin of Groupon, Inc is about -20.8%, meaning it is currently running at a net loss. Based on the latest reported figures.

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.

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