Latest Ratios: P/E Ratio -1.0x · EV/EBITDA 10.7x · ROE -66.2%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $110M | $100M | $166M | $1.5B | $3.8B | $4.3B | $11.3B | $4.5B | $3.2B | $1.6B | $668M |
| Enterprise Value | $163M | $153M | $509M | $1.9B | $4.5B | $5.2B | $12.4B | $5.1B | $3.1B | $1.5B | $591M |
| P/E Ratio → | -1.03 | — | — | — | 14.20 | — | — | — | — | — | — |
| P/S Ratio | 0.29 | 0.27 | 0.27 | 2.04 | 4.94 | 5.59 | 17.58 | 11.00 | 10.02 | 6.40 | 2.63 |
| P/B Ratio | 0.88 | 0.84 | 0.86 | 1.55 | 3.39 | 3.92 | 18.58 | 9.06 | 7.84 | 4.17 | 3.01 |
| P/FCF | — | — | 3.31 | 8.95 | 24.81 | 24.22 | 73.00 | 63.58 | 73.33 | 65.28 | 2683.30 |
| P/OCF | 7.12 | 6.45 | 1.33 | 5.93 | 14.81 | 15.87 | 47.90 | 39.85 | 42.85 | 31.91 | 26.79 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.41 | 0.82 | 2.72 | 5.90 | 6.67 | 19.21 | 12.29 | 9.74 | 5.90 | 2.33 |
| EV / EBITDA | 10.66 | 9.99 | — | 31.45 | 44.97 | 34.02 | 103.86 | 105.10 | 183.11 | 4070.01 | — |
| EV / EBIT | — | — | — | 36.05 | 41.12 | 409.97 | 189.15 | 133.36 | — | — | — |
| EV / FCF | — | — | 10.13 | 11.95 | 29.63 | 28.93 | 79.79 | 71.07 | 71.26 | 60.22 | 2372.74 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.2% | 60.2% | 70.7% | 68.5% | 74.3% | 67.2% | 68.1% | 77.6% | 75.1% | 68.6% | 52.9% |
| Operating Margin | -16.8% | -16.8% | -119.4% | -9.5% | 1.2% | 10.1% | 8.8% | 4.3% | -1.9% | -7.4% | -15.8% |
| Net Profit Margin | -27.4% | -27.4% | -135.5% | 2.5% | 34.8% | -0.2% | -1.0% | -2.3% | -4.6% | -8.0% | -16.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -66.2% | -66.2% | -147.2% | 1.8% | 24.0% | -0.2% | -1.1% | -2.1% | -3.7% | -6.6% | -18.7% |
| ROA | -18.1% | -18.1% | -64.5% | 0.9% | 9.9% | -0.1% | -0.3% | -0.9% | -2.5% | -5.5% | -14.5% |
| ROIC | -13.4% | -13.4% | -56.1% | -3.1% | 0.4% | 3.2% | 3.2% | 2.0% | -1.6% | -7.0% | -19.5% |
| ROCE | -26.5% | -26.5% | -95.1% | -3.8% | 0.3% | 3.2% | 3.2% | 1.7% | -1.1% | -6.1% | -17.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 2.61 | 0.66 | 1.08 | 1.53 | 2.51 | 1.84 | 0.69 | — | — |
| Debt / EBITDA | 5.49 | 5.49 | — | 10.08 | 12.03 | 11.15 | 12.86 | 19.14 | 16.61 | — | — |
| Net Debt / Equity | — | 0.44 | 1.78 | 0.52 | 0.66 | 0.76 | 1.73 | 1.07 | -0.22 | -0.32 | -0.35 |
| Net Debt / EBITDA | 3.46 | 3.46 | — | 7.89 | 7.32 | 5.54 | 8.84 | 11.08 | -5.33 | -341.78 | — |
| Debt / FCF | — | — | 6.83 | 3.00 | 4.82 | 4.71 | 6.79 | 7.49 | -2.07 | -5.06 | -310.56 |
| Interest Coverage | -107.32 | -107.32 | -264.78 | 14.33 | 18.21 | 1.83 | 0.99 | 0.84 | -0.20 | -248.74 | -236.06 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.86 | 0.86 | 0.83 | 0.80 | 8.24 | 14.19 | 10.78 | 11.31 | 8.29 | 4.44 | 1.73 |
| Quick Ratio | 0.86 | 0.86 | 0.83 | 0.80 | 8.24 | 14.19 | 10.66 | 11.16 | 8.22 | 4.40 | 1.69 |
| Cash Ratio | 0.52 | 0.52 | 0.60 | 0.64 | 7.62 | 13.52 | 10.44 | 10.77 | 7.84 | 4.04 | 1.20 |
| Asset Turnover | — | 1.36 | 0.71 | 0.41 | 0.31 | 0.27 | 0.29 | 0.28 | 0.42 | 0.57 | 0.87 |
| Inventory Turnover | — | — | — | — | — | — | 16.08 | 8.75 | 17.12 | 39.24 | 46.37 |
| Days Sales Outstanding | — | 15.11 | 13.97 | 16.00 | 11.19 | 8.39 | 7.31 | 10.24 | 14.47 | 15.53 | 40.17 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 7.0% | — | — | — | — | — | — |
| FCF Yield | — | — | 30.2% | 11.2% | 4.0% | 4.1% | 1.4% | 1.6% | 1.4% | 1.5% | 0.0% |
| Buyback Yield | 0.0% | 0.0% | 1.5% | 22.9% | 8.5% | 6.9% | 0.7% | 0.4% | 0.6% | 0.0% | 1.6% |
| Total Shareholder Yield | 0.0% | 0.0% | 1.5% | 22.9% | 8.5% | 6.9% | 0.7% | 0.4% | 0.6% | 0.0% | 1.6% |
| Shares Outstanding | — | $107M | $103M | $129M | $150M | $141M | $125M | $119M | $113M | $100M | $91M |
Liquidity and AI disruption
According to current market data, Chegg trades at a price-to-sales multiple of 0.33, a valuation level that suggests investors are pricing the company on a liquidation or terminal value basis rather than as a viable, long-term growth entity within the education technology sector.
The absence of a meaningful P/E ratio and the depressed P/S multiple indicate that the market has largely abandoned the growth-oriented thesis that previously supported higher multiples. This valuation appears to reflect a consensus view that the company's core subscription model faces an existential threat from generative AI, rendering historical growth benchmarks irrelevant.
As reported in recent financial statements, the company's net margin has deteriorated to -27.44%, highlighting a fundamental inability to maintain profitability as the cost of content production remains high while top-line revenue experiences a significant and sustained contraction across all primary business segments.
While gross margins remain near 60%, the inability to convert this into operating profit suggests that the company's fixed-cost base is no longer aligned with its current revenue scale. Investors should monitor whether the company can successfully pivot to a lower-cost content model, as current margins appear insufficient to support ongoing operations.
Based on reported figures, the company's ROIC has trended into deep negative territory, reaching -0.5% in the most recent quarter, which reflects the severe destruction of shareholder value as past investments in content and acquisitions are increasingly written down or rendered obsolete by market shifts.
The consistent decay in return on capital suggests that the company is no longer compounding value, but rather consuming its remaining capital base to sustain a shrinking business. This trend warrants further investigation into whether any remaining assets can generate positive returns in a post-AI academic environment.
As documented in recent quarterly filings, the company's asset turnover ratio has declined to 0.24, indicating a significant reduction in the efficiency with which the company utilizes its remaining asset base to generate revenue compared to its historical performance in the education services market.
The deterioration in asset turnover, coupled with the volatility in the cash conversion cycle, suggests that the company is struggling to manage its working capital effectively during this period of rapid contraction. This inefficiency appears to be a symptom of a business model that is losing its operational leverage.
According to the most recent balance sheet data, the company's cash and equivalents have fallen to $31.1 million, a level that appears dangerously low and leaves the firm with minimal flexibility to navigate further operational shocks or fund necessary strategic pivots without external financing.
The current ratio of 1.04 provides a thin margin of safety, suggesting that the company's ability to meet short-term obligations is highly dependent on its ability to stabilize revenue quickly. Investors should monitor the cash burn rate closely, as the current liquidity position may necessitate dilutive capital raises.
The most commonly misapplied metric for this business is Adjusted EBITDA, which frequently obscures the company's true cash-burn nature by excluding significant stock-based compensation and content amortization costs that are essential to maintaining the firm's competitive position in the current academic assistance market.
Analysts should instead focus on free cash flow and cash-on-hand, as these metrics provide a more accurate picture of the company's actual survival capacity. Relying on Adjusted EBITDA in this context may lead to an overestimation of the company's financial health and its ability to sustain operations.
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Quick answers to the most common questions about buying CHGG stock.
Chegg, Inc.'s current P/E ratio is -1.0x. The historical average is 14.2x.
Chegg, Inc.'s current EV/EBITDA is 10.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 29.8x.
Chegg, Inc.'s return on equity (ROE) is -66.2%. The historical average is -25.3%.
Based on historical data, Chegg, Inc. is trading at a P/E of -1.0x. Compare with industry peers and growth rates for a complete picture.
Chegg, Inc. has 60.2% gross margin and -16.8% operating margin.
Chegg, Inc.'s Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.