What Udemy, Inc.'s (NASDAQ:UDMY) P/S Is Not Telling You

Simply Wall St.01-04

There wouldn't be many who think Udemy, Inc.'s (NASDAQ:UDMY) price-to-sales (or "P/S") ratio of 1.6x is worth a mention when the median P/S for the Consumer Services industry in the United States is ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2501459922?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/3112400-choice2-main-header/1585186895258","is_english":true,"pubTime":"2025-01-04 22:51","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2501459922","market":"nz","top_or_hot":-1,"title":"What Udemy, Inc.'s (NASDAQ:UDMY) P/S Is Not Telling You","media":"Simply Wall St.","content":"<div>\n<p>There wouldn't be many who think Udemy, Inc.'s (NASDAQ:UDMY) price-to-sales (or \"P/S\") ratio of 1.6x is worth a mention when the median P/S for the Consumer Services industry in the United States is ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-udmy/udemy/news/what-udemy-incs-nasdaqudmy-ps-is-not-telling-you\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Udemy, Inc.'s (NASDAQ:UDMY) P/S Is Not Telling You</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Udemy, Inc.'s (NASDAQ:UDMY) P/S Is Not Telling You\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-04 22:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nasdaq-udmy/udemy/news/what-udemy-incs-nasdaqudmy-ps-is-not-telling-you><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There wouldn't be many who think Udemy, Inc.'s (NASDAQ:UDMY) price-to-sales (or \"P/S\") ratio of 1.6x is worth a mention when the median P/S for the Consumer Services industry in the United States is ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-udmy/udemy/news/what-udemy-incs-nasdaqudmy-ps-is-not-telling-you\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4112","symbol_name":"金融交易所和数据","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-udmy/udemy/news/what-udemy-incs-nasdaqudmy-ps-is-not-telling-you","article_id":"2501459922","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3112400-choice2-main-header/1585186895258"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2501459922","pubTimestamp":1736002273,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"There wouldn't be many who think Udemy, Inc.'s ( NASDAQ:UDMY ) price-to-sales (or \"P/S\") ratio of 1.6x is worth a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4112":"金融交易所和数据","PSQ":"纳指反向ETF","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","QLD":"纳指两倍做多ETF","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","BK4204":"教育服务",".IXIC":"NASDAQ Composite","BK4585":"ETF&股票定投概念","NDAQ":"纳斯达克OMX交易所","TQQQ":"纳指三倍做多ETF","TSYW.SI":"TESLA 3xLongSG261006","USAW.SI":"AMZN 3xLongSG261006","UDMY":"Udemy, Inc.","BK4588":"碎股","SQQQ":"纳指三倍做空ETF","QID":"纳指两倍做空ETF","NVIW.SI":"NVDA 3xLongSG261006","USJW.SI":"ALPHAB 3xLongSG261006","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC"},"translate_title":"Udemy,Inc.（纳斯达克股票代码：UDMY）的P/S没有告诉您什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UDMY":1,"NDAQ":1,".IXIC":1,"USJW.SI":0.6,"USAW.SI":0.6,"TSYW.SI":0.6,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NVIW.SI":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"There wouldn't be many who think Udemy, Inc.'s (NASDAQ:UDMY) price-to-sales (or \"P/S\") ratio of 1.6x is worth a mention when the median P/S for the Consumer Services industry in the United States is similar at about 1.4x.  However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.      See our latest analysis for Udemy NasdaqGS:UDMY Price to Sales Ratio vs Industry January 4th 2025 How Has Udemy Performed Recently?  Udemy could be doing better as it's been growing revenue less than most other companies lately.   One possibility is that the P/S ratio is moderate because investors think this lacklustre revenue performance will turn around.  However, if this isn't the case, investors might get caught out paying too much for the stock.      Want the full picture on analyst estimates for the company? Then our free report on Udemy will help you uncover what's on the horizon.   What Are Revenue Growth Metrics Telling Us About The P/S?   The only time you'd be comfortable seeing a P/S like Udemy's is when the company's growth is tracking the industry closely.   Taking a look back first, we see that the company managed to grow revenues by a handy 10% last year.   Pleasingly, revenue has also lifted 58% in aggregate from three years ago, partly thanks to the last 12 months of growth.  Therefore, it's fair to say the revenue growth recently has been superb for the company.     Looking ahead now, revenue is anticipated to climb by 6.7% each year during the coming three years according to the analysts following the company.  Meanwhile, the rest of the industry is forecast to expand by 19% per annum, which is noticeably more attractive.  With this in mind, we find it intriguing that Udemy's P/S is closely matching its industry peers.  Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now.  Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.    What We Can Learn From Udemy's P/S?  Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.  Our look at the analysts forecasts of Udemy's revenue prospects has shown that its inferior revenue outlook isn't negatively impacting its P/S as much as we would have predicted.  At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long.  This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.      A lot of potential risks can sit within a company's balance sheet.  You can assess many of the main risks through our free balance sheet analysis for Udemy with six simple checks.   It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.0","shortVersion":"4.30.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2501459922"}