UDMY Stock Risk & Deep Value Analysis
Udemy Inc
Consumer Defensive • Education & Training Services
DVR Score
out of 10
What You Need to Know About UDMY Stock
We analyzed Udemy Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran UDMY through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
UDMY Risk Analysis & Red Flags
What Could Go Wrong
The primary risk is that Coursera (COUR), the acquiring entity, continues its poor financial performance seen in Q1 2026 (widened net losses and lowered guidance). This directly impacts the value of UDMY shares, as they are converting to COUR shares at a fixed 0.800 ratio. If COUR's stock significantly declines further, the effective value for UDMY shareholders will also drop proportionally.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
High
Execution
High
Regulatory
Low
Red Flags
- ⚠
Acquisition of Udemy by Coursera is complete, eliminating UDMY's independent operations and 10x growth potential.
- ⚠
Insider activity on 2026-05-11 involved significant dispositions of UDMY shares to the issuer, with executives ending with zero shares, consistent with the cessation of independent operations.
- ⚠
Q4 2025 revenue growth for Udemy was negative (-3.0% YoY) with razor-thin profitability (0.48% net margin), as noted in prior analysis, indicating pre-merger financial weakness.
- ⚠
Analyst 'Buy' rating and $9.00 price target appear to be for a standalone entity that no longer exists, creating potential for investor misunderstanding.
Upcoming Risk Events
- 📅
Further deterioration of Coursera's financial performance (Ongoing): Continued widened losses or lowered guidance from Coursera could depress the value of the converted UDMY shares.
- 📅
Delayed or complicated share conversion process (Next 1-2 months): Any technical or regulatory hurdles delaying the final conversion could keep UDMY trading at a discount or cause uncertainty.
When to Reconsider
- 🚪
Exit if Coursera's (COUR) stock price drops below $4.00/share, implying a UDMY value below $3.20.
- 🚪
Sell immediately upon confirmation of significant negative developments within Coursera's Q2 2026 earnings (e.g., revenue miss by >5%, substantial increase in net losses YoY).
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What Does Udemy Inc (UDMY) Do?
Market Cap
$675.68M
Sector
Consumer Defensive
Industry
Education & Training Services
Employees
1,246
Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It operates through Enterprise and Consumer segments. The company offers skill acquisition, development, and validation courses through direct-to-consumer or Udemy Business offerings in various languages. It also provides reskilling or upskilling in technology, business, soft skills, and personal development; access to interactive learning tools comprising quizzes and exercises, as well as the ability to ask questions and engage with the instructor directly; Udemy AI assistant, a natural-language chat interface to help learners discover and engage with the company's content; AI skills mapping tool and AI-powered learning paths; and professional services, including learning architecture and content mapping services. The company serves organizations, including enterprise and government customers; and individuals. Udemy, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
Visit Udemy Inc WebsiteInvestment Thesis
There is no independent 'If/Then' financial thesis for UDMY stock to achieve 10x growth, as the company has been acquired by Coursera. Any potential for value appreciation for former UDMY shareholders now depends entirely on Coursera's ability to achieve operational synergies and demonstrate strong growth post-acquisition, thereby driving its own share price higher.
Is UDMY Stock Undervalued?
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UDMY Price Targets & Strategy
12-Month Target
$5.50
Bull Case
$7.00
Bear Case
$3.50
Valuation Basis
Based on a 0.800 fixed share exchange ratio to Coursera (COUR) and an estimated 12-month target of $6.88 for COUR, reflecting a modest recovery from current implied value.
Entry Strategy
Given the completed merger, UDMY's price is expected to converge with 0.800x Coursera's share price. Any entry would be an arbitrage play on the spread, not a growth investment. Avoid accumulation for 10x potential.
Exit Strategy
Exit upon official share conversion to COUR, or if Coursera's stock experiences significant negative momentum. Stop-loss at $4.00, signaling further weakness in Coursera or conversion issues.
Portfolio Allocation
0% for growth-focused portfolios; minimal (under 0.5%) for short-term arbitrage if a significant spread exists and conversion is imminent.
Price Targets & Strategy
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Is UDMY Financially Healthy?
Valuation
P/E Ratio
177.48
EV/EBITDA
30.30
PEG Ratio
-18.00
Price/Book
3.18
Price/Sales
0.89
Profitability
Gross Margin
65.63%
Operating Margin
-0.53%
Net Margin
0.48%
Return on Equity
1.74%
Revenue Growth
0.42%
EPS
$0.02
Balance Sheet
Current Ratio
1.31
Quick Ratio
1.25
Cash & Equivalents
$215.00M
Cash Flow
Operating Cash Flow
$56.00M
Free Cash Flow
$48.00M
EBITDA
$22.10M
Other
Beta (Volatility)
1.62
Does UDMY Have a Competitive Moat?
Sign in to unlockMoat Rating
⚪ None
Moat Trend
Eroding
Udemy's independent moat (content library, instructor network, brand) is now subsumed by Coursera. As a standalone entity, its moat has effectively ceased to exist as a driver of independent value.
Moat Erosion Risks
- •Integration challenges with Coursera impacting customer retention and content quality.
- •Increased competition from other online learning platforms diminishing the combined entity's competitive edge.
UDMY Competitive Moat Analysis
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UDMY Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral, as discussions likely focus on the acquisition rather than independent UDMY prospects.
Institutional Sentiment
Negative towards UDMY as a standalone entity, with significant insider dispositions confirming the cessation of independent operations. The analyst average 'Buy' rating with a $9.00 target for UDMY is an outlier given the completed merger and current price of $4.63.
Insider Activity (Form 4)
Robert Rosenthal (President, Udemy Business) received a grant of 68,750 shares and disposed of 485,462 shares to the issuer on 2026-05-11, ending with 0 direct UDMY shares. Jeffrey Lieberman (director and 10% owner) disposed of 38,032,260 indirect shares and 147,477 direct shares at $0.00/share on 2026-05-11, leaving 0 shares. These are merger-related exits, not open-market trades.
Options Flow
Normal options activity; no specific unusual put/call ratio or institutional positioning data provided to indicate otherwise.
Earnings Intelligence
Next Earnings
No credible next-earnings date for UDMY as a standalone entity, given the completed acquisition. Q1 2026, reported 2026-05-11, was the last. Future earnings will be reported by Coursera (COUR) as the combined entity.
Surprise Probability
N/A (no future standalone earnings for UDMY)
Historical Earnings Pattern
N/A (no future standalone earnings for UDMY)
Key Metrics to Watch
Competitive Position
Top Competitor
COURSERA (COUR)
Market Share Trend
N/A for UDMY independently; its market share is now integrated into Coursera's consolidated figures.
Valuation vs Peers
Udemy no longer exists as an independent entity for valuation comparison; its value is tied to Coursera's valuation relative to its peers (e.g., LinkedIn Learning, Pluralsight).
Competitive Advantages
- •N/A (as an independent entity)
Market Intelligence
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What Could Drive UDMY Stock Higher?
Near-Term (0-6 months)
- •Final delisting of UDMY shares (Est. Q2 2026): Conversion of UDMY shares to COUR, eliminating any remaining spread arbitrage.
- •Coursera Q2 2026 earnings report (Est. August 2026): Performance of combined entity could impact the value of the converted shares.
Medium-Term (6-18 months)
- •Realization of Udemy-Coursera synergy targets (12-18 months): If Coursera achieves stated cost efficiencies and revenue uplift from the Udemy acquisition, potentially boosting COUR share price beyond current implied value. Target: +$50M-$100M in annualized synergies.
- •Combined entity market share gains in enterprise learning (H2 2027): Successful cross-selling of Udemy Business offerings within Coursera's enterprise segment, leading to expanded customer base and ARR growth for the combined entity.
Long-Term (18+ months)
- •Coursera becoming dominant global online learning platform (by 2030): If the combined entity achieves 20%+ market share in the B2C and B2B online learning segments, driving a significant re-rating to a higher revenue multiple (e.g., 5-7x NTM Revenue).
- •Expansion into new educational technologies/AI (by 2029): Successful integration of advanced AI tools for personalized learning paths and content creation across the combined Coursera/Udemy platform, opening new high-margin revenue streams and expanding TAM.
Catalysts & Growth Drivers
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What's the Bull Case for UDMY?
- ✓
Monitor Coursera's (COUR) quarterly revenue growth — sustained acceleration above 15% YoY would be positive for converted shares.
- ✓
Watch Coursera's (COUR) net income trajectory — a clear path to sustained profitability would be a critical positive signal.
Bull Case Analysis
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Competing with UDMY
See how Udemy Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Udemy Inc UDMY | $675.7M | 0.5 | 177.5 | $781.2M | 0.5% | 0.4% | |
Costco Wholesale Corp COST | — | 0.7 | — | — | — | — | Compare → |
Coca-Cola Co KO | $339.2B | 0.5 | 24.8 | $48.9B | 27.8% | 5.1% | Compare → |
PepsiCo Inc PEP | — | 0.1 | — | — | — | — | Compare → |
Procter & Gamble Co PG | $341.2B | 0.2 | 20.5 | $84.3B | 19.2% | 3.3% | Compare → |
Walmart Inc WMT | $972.0B | 0.7 | 42.8 | $713.2B | 3.1% | 5.9% | Compare → |
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How Udemy Inc Makes Money
Before its acquisition, Udemy operated an online learning marketplace connecting instructors with students and offering an enterprise learning solution (Udemy Business). Instructors created courses, and Udemy provided the platform for a fee. Its customers were individual learners seeking skills development and businesses looking to upskill their workforce. This model generated revenue through course sales and B2B subscriptions, now integrated into Coursera's broader educational platform.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Udemy Inc (UDMY)?
As of May 26, 2026, Udemy Inc has a DVR Score of 0.5 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Udemy Inc?
Udemy Inc's market capitalization is approximately $675.7M. The company operates in the Consumer Defensive sector within the Education & Training Services industry.
What ticker symbol does Udemy Inc use?
UDMY is the ticker symbol for Udemy Inc. The company trades on the NMS.
What is the risk level for UDMY stock?
Our analysis rates Udemy Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of UDMY?
Udemy Inc currently has a price-to-earnings (P/E) ratio of 177.5. This is above the market average, suggesting the stock may be priced for high growth expectations.
Is Udemy Inc's revenue growing?
Udemy Inc has reported revenue growth of 0.4%. The company is growing at a moderate pace.
Is UDMY stock profitable?
Udemy Inc has a profit margin of 0.5%. The company is profitable but margins are modest.
How often is the UDMY DVR analysis updated?
Our AI-powered analysis of Udemy Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 26, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for UDMY (Udemy Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.