Coursera stock snapshot and recent performance
Coursera (COUR) closed at US$6.41, with the share price showing a small gain over the past month but a decline over the past 3 months and past year, including a negative 3 year total return.
The company reports annual revenue of US$757.5m and a net loss of US$51.0m. Recent annual figures indicate positive revenue and net income growth, factors some investors watch when assessing an education technology platform.
See our latest analysis for Coursera.
The recent 7 day share price return of 6.3% sits against a 90 day share price decline of 19.4% and a 3 year total shareholder return loss of 44.8%. This suggests momentum has been fading despite short term rebounds.
If Coursera’s swings have you reassessing your options, it could be a good moment to widen your search with our screener of 60 profitable AI stocks that aren't just burning cash.
With Coursera trading at US$6.41, annual revenue of US$757.5m and a net loss of US$51.0m, the key question is whether the current discount to some valuation estimates signals an opportunity or whether markets are already pricing in future growth.
Most Popular Narrative: 34.4% Undervalued
Coursera’s last close at $6.41 sits well below a narrative fair value of $9.77, which frames the stock as materially discounted in that narrative.
In view of this, those with a desire to learn and expand their horizons will seek knowledge online. And Coursera is one of the best, if not the best, sources of quality online courses in a broad variety of subjects and topics. ology trap, the future for Coursera is bright.
Curious what justifies that higher fair value? The narrative leans heavily on sustained digital learning demand, improving margins and a future earnings profile that supports a richer pricing framework.
Result: Fair Value of $9.77 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, a 19.1% 1 year total return loss and current net loss of US$51.0m highlight profitability and sentiment risks that could challenge this optimistic narrative.
Find out about the key risks to this Coursera narrative.
Another angle on Coursera’s valuation
That user narrative points to a fair value of $9.77 and calls Coursera undervalued, but our DCF model presents a different perspective, with a future cash flow value estimate of $18.06 per share. When one approach suggests potential upside and another suggests even more, how comfortable are you with the assumptions behind both?
Look into how the SWS DCF model arrives at its fair value.
Next Steps
If this mix of upside potential and real risks feels like a lot to weigh, take a closer look at the underlying data and act while it is fresh in mind, and see how our view balances both in 2 key rewards and 1 important warning sign.
Looking for more investment ideas?
You have already put in the work to understand Coursera, so do not stop there when a wider set of stock ideas could sharpen your next move.
- Target reliable income by scanning companies that appear in our 15 dividend fortresses, so you can quickly see which payouts may suit your style.
- Hunt for potential bargains with the 46 high quality undervalued stocks, where you can focus on companies that our data suggests trade below their estimated worth.
- Prioritise resilience by reviewing stocks in the 77 resilient stocks with low risk scores, keeping your shortlist tilted toward businesses with lower overall risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com