2U Inc (TWOU) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
2U Inc stock (TWOU) is currently trading at $1.58. 2U Inc PS ratio (Price-to-Sales) is 0.00. Analyst consensus price target for TWOU is $21.00. WallStSmart rates TWOU as Sell.
- TWOU PE ratio analysis and historical PE chart
- TWOU PS ratio (Price-to-Sales) history and trend
- TWOU intrinsic value — DCF, Graham Number, EPV models
- TWOU stock price prediction 2025 2026 2027 2028 2029 2030
- TWOU fair value vs current price
- TWOU insider transactions and insider buying
- Is TWOU undervalued or overvalued?
- 2U Inc financial analysis — revenue, earnings, cash flow
- TWOU Piotroski F-Score and Altman Z-Score
- TWOU analyst price target and Smart Rating
2U Inc
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Smart Analysis
2U Inc (TWOU) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around market cap and return on equity. Mixed signals suggest waiting for clearer direction before acting.
2U Inc (TWOU) Key Strengths (3)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
Trading below book value, meaning the market prices it less than net assets
Supporting Valuation Data
2U Inc (TWOU) Areas to Watch (6)
Company is destroying shareholder value
Losing money on operations
Revenue declining -16.80%, a shrinking business
Company is losing money with a negative profit margin
Micro-cap company with very limited liquidity and high volatility
Moderate institutional interest at 45.31%
2U Inc (TWOU) Detailed Analysis Report
Overall Assessment
This company scores 42/100 in our Smart Analysis, earning a D grade. Out of 9 metrics analyzed, 3 register as strengths (avg 10.0/10) while 6 fall into concern territory (avg 1.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Price/Book. Valuation metrics including PEG Ratio (0.19), Price/Sales (0.00), Price/Book (0.08) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Revenue Growth. Growth concerns include Revenue Growth at -16.80%, which may limit upside. Profitability pressure is visible in Return on Equity at -101.30%, Operating Margin at -11.40%, Profit Margin at -35.10%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -101.30% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -16.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
TWOU Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
TWOU's Price-to-Sales ratio of 0.00x trades Infinity% above its historical average of 0x (0th percentile), historically expensive. The current valuation is -Infinity% below its historical high of 0x set in Mar 2026, and Infinity% above its historical low of 0x in Mar 2026.
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Data-driven financial summary for 2U Inc (TWOU) · CONSUMER DEFENSIVE › EDUCATION & TRAINING SERVICES
The Big Picture
2U Inc is in a turnaround phase, with management focused on restoring profitability. Revenue reached 906M with 17% decline year-over-year. The company is currently unprofitable, posting a -35.1% profit margin.
Key Findings
Generating 65M in free cash flow and 72M in operating cash flow. Earnings are translating into actual cash generation.
Debt-to-equity ratio of -3.60 indicates a conservative balance sheet with 23M in cash.
Revenue contracted 17% YoY. Worth determining whether this is cyclical or structural.
The company is unprofitable with a -35.1% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Debt management: total debt of 999M is significantly higher than cash (23M). Monitor refinancing risk.
Sector dynamics: monitor EDUCATION & TRAINING SERVICES industry trends, competitive moves, and regulatory changes that could impact 2U Inc.
Bottom Line
2U Inc is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About 2U Inc(TWOU)
NASDAQ
CONSUMER DEFENSIVE
EDUCATION & TRAINING SERVICES
USA
2U, Inc. is an educational technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company is headquartered in Lanham, Maryland.