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Uncovering the Intrinsic Value of Chegg Inc.

 
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An in-depth analysis of Chegg Inc's score and its overall rating, as well as an explanation of the company's data breach.

Description: A graph showing Chegg Inc's stock price over time, with a decrease in the stock price following the first data breach.

Chegg Inc's score of 71 means it scores higher than 71% of stocks in the industry. Chegg Inc also received an overall rating of 58, putting it in the top 20% of stocks in the industry. This is an impressive rating, and it shows that Chegg Inc is a reliable stock. The company has a market capitalization of $13.4 billion and is listed on the New York stock Exchange.

Today we will run through one way of estimating the intrinsic value of Chegg, Inc. (NYSE:CHGG) by taking the forecast future cash flows of the company and discounting them to today's value. This method is known as the discounted cash flow (DCF) analysis. The goal of this analysis is to provide an estimate of the company's value based on its potential future earnings.

The first step in the DCF analysis is to determine the company's free cash flow. This is the amount of money that the company has left over after all operating expenses have been paid. Chegg Inc's free cash flow for the last 12 months was $541 million. The second step is to determine the discount rate, which is the rate of return that the company must earn to make the investment worthwhile.

After the discount rate has been calculated, the next step is to determine the terminal value. This is the value of the company at the end of the forecast period. Chegg Inc's terminal value was calculated to be $8.1 billion. The final step is to discount the free cash flow and terminal value to the present value. The present value of Chegg Inc's free cash flow and terminal value was calculated to be $10.5 billion.

The first Chegg data breach occurred in September 2017, when “multiple” employees fell for a phishing attack that allowed a hacker to access Chegg’s customer database. The hacker accessed the information of 40 million people, including email addresses and passwords. This breach led to a decrease in the stock price of Chegg Inc.

While the data breach did not have a major effect on Chegg Inc's intrinsic value, it did have an effect on the stock price. Investors were wary of the security of the company and this caused a decrease in the stock price. Despite this, Chegg Inc still has a strong intrinsic value and is a reliable stock for Investors.

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chegg incstock marketintrinsic valuediscounted cash flowdata breachNYSE:CHGG
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