Chegg (CHGG) Moat Score: 4/10 (As of Jul. 09, 2026)


CHGG Chegg Inc CHGG
37 GF Score
Price $0.90
GF Value $0.80
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Chegg Moat Score?

Chegg CHGG -4.13% 37 Moat Score is 4 as of Jul. 09, 2026. GuruFocus rates CHGG with a GF Score™ of 37/100 and a GF Value™ of $0.80 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 262 Education companies, Chegg ranks better than 95.04% on this metric.

Chegg has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Chegg has Narrow Moat: Chegg Inc has a discernible but modest moat due to its strong brand in the educational services sector and some customer switching costs. However, it faces significant competition and lacks durable cost advantages or significant regulatory barriers, limiting its moat strength.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Chegg might have Narrow Moat - Discernible but modest moat.

Chegg  (NYSE:CHGG) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Chegg Moat Score Related Terms

CHGG vs LGCY, COE, STG: Moat Score Comparison

For the Education & Training Services subindustry, Chegg's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Chegg Moat Score vs Education Industry

For the Education industry and Consumer Defensive sector, Chegg's Moat Score distribution charts can be found below:

* The bar in red indicates where Chegg's Moat Score falls into.


CHGG
37GF Score
Chegg Inc CHGG
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Chegg (CHGG) has a Moat Score of 4 as of Jul. 09, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Chegg ranks #13 out of 262 companies in the Education industry, placing it in the top 5%.
Is Chegg's Moat Score too high?
Chegg's current Moat Score is 4. Based on the distribution chart, Chegg ranks #13 out of 262 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Chegg has a GF Score™ of 37/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chegg's Moat Score compare to LGCY and COE?
According to the Education industry distribution chart, Chegg ranks #13 out of 262 companies for Moat Score. This places Chegg in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Education company?
A good Moat Score depends on the Education industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Chegg's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chegg stock overvalued right now?
Based on GuruFocus' analysis, Chegg (CHGG) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.80, compared to a current price of $0.90 — trading 12.5% above its estimated fair value. The current Moat Score is 4. Chegg's overall GF Score™ is 37/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Chegg (CHGG), the current Moat Score is 4 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Chegg (CHGG) Overvalued in 2026?

Based on GuruFocus' analysis, Chegg stock appears to be overvalued. The current stock price of $0.90 is trading 12.5% above its estimated GF Value™ of $0.80. GuruFocus considers Chegg to be Modestly Overvalued.

Key valuation signals for CHGG:

  • Moat Score: 4
  • GF Value™: $0.80 vs. price of $0.90 (12.5% above fair value)
  • GF Score™: 37/100 with 5 warning signs

No single metric tells the full story. See the CHGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Chegg Business Description

Address 2261 Market Street, Suite 46218, Santa Clara, CA, USA, 95054
Chegg Inc is an American educational services company. The Chegg platform provides products and services to support learners with their academic course materials, as well as their career and personal skills development. The company's service and product offerings fall into two categories: Chegg Skilling; and Academic Services, which derives maximum revenue. Geographically, it derives in United States and International.
37GF Score

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$0.90
Price
$0.80
GF Value