Nerdy, Inc.

NRDY

TechnologySoftware - ApplicationNYSE

$0.86

Market Cap: $107.01M

Nerdy, Inc. (NRDY) Valuation Summary

Updated May 11, 2026 17:36

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.04 – $5.26	$1.62	+87.9%
Revenue DCF 10Y	$0.07 – $5.79	$1.87	+116.4%
▸ Trading Multiples
EV/Revenue	$1.13 – $6.05	$1.80	+109.3%

Valuation History

DCF Analysis

Nerdy, Inc. (NRDY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.87

Market Price

$0.86

Upside / Downside

+116.4%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -19.3% to a target of 10.2% over 5 years, discounted at a WACC of 8.6%, Nerdy, Inc. (NRDY) has an intrinsic value of $1.87 per share (range: $0.07 – $5.79).

Key Assumptions

Current Operating Margin

-19.3%

Target Operating Margin

10.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.4%

Target CapEx/Rev

6.1%

D&A/Revenue

4.1%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	183	2.2%	-13.4%	-25	-25	7	(7)	4	-28	-26
2027	196	7.0%	-7.5%	-15	-15	8	(8)	0	-15	-13
2028	235	20.1%	-1.6%	-4	-4	10	(10)	1	-5	-4
2029	255	8.5%	4.3%	11	9	10	(11)	1	7	5
2030	271	6.2%	10.2%	28	22	11	(13)	1	20	13
2031	286	5.7%	10.2%	29	23	12	(14)	1	20	13
2032	301	5.1%	10.2%	31	24	12	(16)	0	20	12
2033	315	4.6%	10.2%	32	25	13	(17)	0	20	11
2034	328	4.1%	10.2%	34	27	13	(19)	0	20	10
2035	339	3.5%	10.2%	35	27	14	(21)	0	20	9

Enterprise Value Bridge

Sum of PV(FCFF)29

Terminal Value (Gordon Growth at 3.0%)369

PV of Terminal Value168

Enterprise Value197

(–) Net Debt-29

Equity Value225

(÷) Shares Outstanding121

Fair Value per Share$1.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.6%	$0	$2	$3	$4	$6
7.6%	$0	$1	$2	$3	$4
8.6%	$0	$1	$2	$3	$4
9.6%	$0	$1	$2	$2	$3
10.6%	$0	$1	$1	$2	$2

Current price: $0.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 3.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Nerdy, Inc. (NRDY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.62

Market Price

$0.86

Upside / Downside

+87.9%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-19.3%

Target Operating Margin

10.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.4%

Target CapEx/Rev

6.1%

D&A/Revenue

4.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	183	2.2%	-13.4%	-25	-25	7	(7)	4	-28	-27
2027	196	7.0%	-7.5%	-15	-15	8	(9)	0	-16	-14
2028	235	20.1%	-1.6%	-4	-4	10	(12)	1	-7	-6
2029	255	8.5%	4.3%	11	9	10	(14)	1	4	3
2030	271	6.2%	10.2%	28	22	11	(16)	1	16	11

Enterprise Value Bridge

Sum of PV(FCFF)-33

Terminal Value (Gordon Growth at 3.0%)290

PV of Terminal Value200

Enterprise Value167

(–) Net Debt-29

Equity Value196

(÷) Shares Outstanding121

Fair Value per Share$1.62

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.6%	$0	$2	$3	$4	$5
7.6%	$0	$1	$2	$3	$4
8.6%	$0	$1	$2	$2	$3
9.6%	$-0	$1	$1	$2	$3
10.6%	$-0	$1	$1	$2	$2

Current price: $0.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 3.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$1.80

Market Price

$0.86

Upside / Downside

+109.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Nerdy, Inc. (NRDY) has a fair value of $1.80 based on 8 comparable companies in the Software - Application industry.

EV/Revenue Valuation — Software - Application

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Nerdy, Inc.NRDY	104	0.4x	0.4x
Amtech Systems, Inc.ASYS	310	3.9x	2.9x
Magnachip Semiconductor CorporationMX	165	0.6x	0.5x
Roadzen, Inc.RDZN	149	3.8x	3.2x
SoundThinking, Inc.SSTI	91	0.8x	0.8x
Airship AI Holdings, Inc.AISP	88	5.0x	3.2x
Teads Holding Co.TEAD	85	0.5x	0.7x
WM Technology, Inc.MAPS	65	0.2x	0.2x
PSQ Holdings, Inc.PSQH	36	1.5x	1.2x
Industry Median		1.2x	1.0x
(*) Revenue		179	176
= Enterprise Value		207	172
(-) Net Debt		-29	-29
Equity Value		236	201
(/) Outstanding shares		121	121
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.80

+109.3%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.04 – $5.26

$1.62

+87.9%

Revenue DCF 10Y

$0.07 – $5.79

$1.87

+116.4%

▸ Trading Multiples

EV/Revenue

$1.13 – $6.05

$1.80

+109.3%

DCF Analysis

Nerdy, Inc. (NRDY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.87

Market Price

$0.86

Upside / Downside

+116.4%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-19.3%

Target Operating Margin

10.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.4%

Target CapEx/Rev

6.1%

D&A/Revenue

4.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	183	2.2%	-13.4%	-25	-25	7	(7)	4	-28	-26
2027	196	7.0%	-7.5%	-15	-15	8	(8)	0	-15	-13
2028	235	20.1%	-1.6%	-4	-4	10	(10)	1	-5	-4
2029	255	8.5%	4.3%	11	9	10	(11)	1	7	5
2030	271	6.2%	10.2%	28	22	11	(13)	1	20	13
2031	286	5.7%	10.2%	29	23	12	(14)	1	20	13
2032	301	5.1%	10.2%	31	24	12	(16)	0	20	12
2033	315	4.6%	10.2%	32	25	13	(17)	0	20	11
2034	328	4.1%	10.2%	34	27	13	(19)	0	20	10
2035	339	3.5%	10.2%	35	27	14	(21)	0	20	9

Enterprise Value Bridge

Sum of PV(FCFF)29

Terminal Value (Gordon Growth at 3.0%)369

PV of Terminal Value168

Enterprise Value197

(–) Net Debt-29

Equity Value225

(÷) Shares Outstanding121

Fair Value per Share$1.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.6%	$0	$2	$3	$4	$6
7.6%	$0	$1	$2	$3	$4
8.6%	$0	$1	$2	$3	$4
9.6%	$0	$1	$2	$2	$3
10.6%	$0	$1	$1	$2	$2

Current price: $0.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 3.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$1.80

Market Price

$0.86

Upside / Downside

+109.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Nerdy, Inc. (NRDY) has a fair value of $1.80 based on 8 comparable companies in the Software - Application industry.

EV/Revenue Valuation — Software - Application

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Nerdy, Inc.NRDY	104	0.4x	0.4x
Amtech Systems, Inc.ASYS	310	3.9x	2.9x
Magnachip Semiconductor CorporationMX	165	0.6x	0.5x
Roadzen, Inc.RDZN	149	3.8x	3.2x
SoundThinking, Inc.SSTI	91	0.8x	0.8x
Airship AI Holdings, Inc.AISP	88	5.0x	3.2x
Teads Holding Co.TEAD	85	0.5x	0.7x
WM Technology, Inc.MAPS	65	0.2x	0.2x
PSQ Holdings, Inc.PSQH	36	1.5x	1.2x
Industry Median		1.2x	1.0x
(*) Revenue		179	176
= Enterprise Value		207	172
(-) Net Debt		-29	-29
Equity Value		236	201
(/) Outstanding shares		121	121
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.80

+109.3%