Udemy Inc
NASDAQ: UDMY · CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES
Updated 2026-04-30
Udemy Inc (UDMY) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for UDMY.
Current price exceeds what fundamentals support. Risk/reward skewed unfavorably.
UDMY historical valuation range
Where current P/E sits in UDMY's own 5Y range.
UDMY intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
UDMY valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 172.33x
P/S Ratio — History
Current: 0.95x
Is UDMY overvalued in 2026?
Udemy Inc (UDMY) currently trades at $4.74 per share with a market capitalization of $754,487,000.00. Based on our multi-factor framework, the stock appears richly valued with a Smart Value Score of 35/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 172.3x, above its 5-year median of 169.2x.
Looking at its own history, UDMY is currently trading more expensive than 83% of the last 5Y on P/E. This places it in the 83th percentile of its historical range, a zone where forward returns have typically been muted.
Our discounted cash flow model estimates UDMY's intrinsic value at $9.81 per share, against the current market price of $4.74. This implies a margin of safety of +52.91%. A meaningful cushion exists against model error, making this a reasonable risk-adjusted entry.
Financial quality is a concern. The Piotroski F-Score of 0/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.
Bottom line: UDMY appears richly valued on our framework, with a Smart Value Score of 35/100. At current levels the risk/reward is skewed against the buyer. A materially lower price or significant operational improvement would be needed to change the picture.
Frequently asked questions
Is UDMY overvalued in 2026?
Based on a Smart Value Score of 35/100, UDMY appears overvalued. Current price exceeds what fundamentals currently justify.
What is UDMY's fair value?
Our DCF model estimates UDMY's intrinsic value at $9.81 per share, versus the current price of $4.74. This produces a margin of safety of +52.91%.
What P/E ratio does UDMY trade at?
UDMY trades at a P/E of 172.3x on trailing twelve-month earnings, compared to its 5-year median of 169.2x.
Is UDMY a buy based on valuation?
WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 35/100 reflects the combined read on growth, quality, and price. The profile skews cautious. Consider waiting for a better price or clearer operational improvement.
How does UDMY's valuation compare to its history?
On P/E, UDMY currently sits in the 83th percentile of its own 5Y range. That is historically expensive relative to where it has traded over the period.
What is UDMY's Smart Value Score?
UDMY's Smart Value Score is 35/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.