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Introduction
Over the last 4 months I have initiated coverage on Coursera (NYSE:COUR), in this article I hope to highlight some of my current thoughts and share my Free Cash Flow valuation
If Online Education Has A Future, Coursera Is Positioned To Be In It
Summary
- With $720 million in cash, Coursera is well-positioned for potential acquisitions or other strategic uses to spur growth or safeguard against losses.
- Coursera's growth has slowed, but I believe focusing on improving margins and maintaining steady growth is a prudent strategy.
- AI can significantly reduce course creation costs and drive demand for AI-related courses, positively impacting Coursera's margins and revenue.
- My Discounted FCF valuation gives me a target price of $13.52.
I am an ex-poker player and ex Mathematics teacher. I got lucky with some early investments but fell in love with researching and valuing companies, I have been lucky enough to be able to do that fulltime since 2016
Analyst’s Disclosure: I/we have a beneficial long position in the shares of COUR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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