Chegg, Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: explicit Y1-Y5 FCF path of -$5M, $5M, $15M, $20M, $22M reflecting AI-driven enrollment decline bottoming and cost restructuring; 2% terminal growth from Y5; 13% discount rate reflecting high business-model risk; plus $21.6M net cash; 111.03M shares outstanding.

Reasoning: Chegg's revenue fell 39% in FY2025 as generative-AI tools displace its core tutoring/Q&A product, so a standard growing-FCF DCF is not appropriate; a declining-to-stabilizing FCF path with a high discount rate better captures turnaround/distress risk, with the current net cash cushion added back.