DUOLINGO (DUOL) Fundamental Analysis & Valuation

NASDAQ:DUOL • US26603R1068

Current stock price

98.39 USD
+3.47 (+3.66%)
At close:
98.42 USD
+0.03 (+0.03%)
Pre-Market:

This DUOL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DUOL Profitability Analysis

1.1 Basic Checks

  • DUOL had positive earnings in the past year.
  • DUOL had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: DUOL reported negative net income in multiple years.
  • In the past 5 years DUOL always reported a positive cash flow from operatings.
DUOL Yearly Net Income VS EBIT VS OCF VS FCFDUOL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M 400M

1.2 Ratios

  • With an excellent Return On Assets value of 20.47%, DUOL belongs to the best of the industry, outperforming 94.52% of the companies in the same industry.
  • DUOL has a Return On Equity of 29.52%. This is amongst the best in the industry. DUOL outperforms 90.41% of its industry peers.
  • The Return On Invested Capital of DUOL (6.90%) is better than 67.12% of its industry peers.
Industry RankSector Rank
ROA 20.47%
ROE 29.52%
ROIC 6.9%
ROA(3y)9.76%
ROA(5y)2.44%
ROE(3y)14.64%
ROE(5y)4.24%
ROIC(3y)N/A
ROIC(5y)N/A
DUOL Yearly ROA, ROE, ROICDUOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 30

1.3 Margins

  • DUOL has a Profit Margin of 40.03%. This is amongst the best in the industry. DUOL outperforms 97.26% of its industry peers.
  • The Operating Margin of DUOL (11.58%) is better than 72.60% of its industry peers.
  • Looking at the Gross Margin, with a value of 71.99%, DUOL belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
  • DUOL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.58%
PM (TTM) 40.03%
GM 71.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.39%
GM growth 5Y0.19%
DUOL Yearly Profit, Operating, Gross MarginsDUOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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8

2. DUOL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DUOL is destroying value.
  • DUOL has more shares outstanding than it did 1 year ago.
  • DUOL has more shares outstanding than it did 5 years ago.
  • There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
DUOL Yearly Shares OutstandingDUOL Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
DUOL Yearly Total Debt VS Total AssetsDUOL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • DUOL has an Altman-Z score of 6.25. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
  • DUOL's Altman-Z score of 6.25 is amongst the best of the industry. DUOL outperforms 93.15% of its industry peers.
  • DUOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.25
ROIC/WACC0.77
WACC8.92%
DUOL Yearly LT Debt VS Equity VS FCFDUOL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • DUOL has a Current Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
  • DUOL's Current ratio of 2.82 is amongst the best of the industry. DUOL outperforms 87.67% of its industry peers.
  • DUOL has a Quick Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
  • DUOL's Quick ratio of 2.82 is amongst the best of the industry. DUOL outperforms 87.67% of its industry peers.
Industry RankSector Rank
Current Ratio 2.82
Quick Ratio 2.82
DUOL Yearly Current Assets VS Current LiabilitesDUOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 2025 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DUOL Growth Analysis

3.1 Past

  • DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 352.94%, which is quite impressive.
  • The Revenue has grown by 38.71% in the past year. This is a very strong growth!
  • Measured over the past years, DUOL shows a very strong growth in Revenue. The Revenue has been growing by 45.03% on average per year.
EPS 1Y (TTM)352.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%196.67%
Revenue 1Y (TTM)38.71%
Revenue growth 3Y41.08%
Revenue growth 5Y45.03%
Sales Q2Q%35%

3.2 Future

  • The Earnings Per Share is expected to decrease by -15.81% on average over the next years. This is quite bad
  • Based on estimates for the next years, DUOL will show a quite strong growth in Revenue. The Revenue will grow by 16.61% on average per year.
EPS Next Y-61.16%
EPS Next 2Y-32.76%
EPS Next 3Y-15.81%
EPS Next 5YN/A
Revenue Next Year17.93%
Revenue Next 2Y16.28%
Revenue Next 3Y14.23%
Revenue Next 5Y16.61%

3.3 Evolution

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
DUOL Yearly Revenue VS EstimatesDUOL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
DUOL Yearly EPS VS EstimatesDUOL Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 6 8

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4

4. DUOL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.62, the valuation of DUOL can be described as reasonable.
  • 79.45% of the companies in the same industry are more expensive than DUOL, based on the Price/Earnings ratio.
  • DUOL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.71.
  • The Price/Forward Earnings ratio is 29.91, which means the current valuation is very expensive for DUOL.
  • DUOL's Price/Forward Earnings ratio is in line with the industry average.
  • DUOL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.62
Fwd PE 29.91
DUOL Price Earnings VS Forward Price EarningsDUOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUOL.
  • Based on the Price/Free Cash Flow ratio, DUOL is valued a bit cheaper than 76.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.29
EV/EBITDA 26.92
DUOL Per share dataDUOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • DUOL has a very decent profitability rating, which may justify a higher PE ratio.
  • DUOL's earnings are expected to decrease with -15.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-32.76%
EPS Next 3Y-15.81%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DUOL Dividend Analysis

5.1 Amount

  • DUOL does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

DUOL Fundamentals: All Metrics, Ratios and Statistics

DUOLINGO

NASDAQ:DUOL (3/13/2026, 8:21:44 PM)

Premarket: 98.42 +0.03 (+0.03%)

98.39

+3.47 (+3.66%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-27
Earnings (Next)04-29
Inst Owners92.1%
Inst Owner Change-5.1%
Ins Owners0.74%
Ins Owner Change2.05%
Market Cap4.62B
Revenue(TTM)1.04B
Net Income(TTM)386.02M
Analysts71.61
Price Target289.98 (194.73%)
Short Float %22.33%
Short Ratio3.29
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)359.08%
Min EPS beat(2)54.23%
Max EPS beat(2)663.94%
EPS beat(4)3
Avg EPS beat(4)179.08%
Min EPS beat(4)-39%
Max EPS beat(4)663.94%
EPS beat(8)7
Avg EPS beat(8)120.2%
EPS beat(12)11
Avg EPS beat(12)113.9%
EPS beat(16)15
Avg EPS beat(16)93.29%
Revenue beat(2)2
Avg Revenue beat(2)1.78%
Min Revenue beat(2)0.81%
Max Revenue beat(2)2.76%
Revenue beat(4)4
Avg Revenue beat(4)1.25%
Min Revenue beat(4)0.02%
Max Revenue beat(4)2.76%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)8
Avg Revenue beat(12)0.63%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)-5.99%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)-25.69%
EPS NY rev (3m)-25.53%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-3.49%
Revenue NY rev (3m)-3.57%
Valuation
Industry RankSector Rank
PE 11.62
Fwd PE 29.91
P/S 4.79
P/FCF 13.29
P/OCF 12.69
P/B 3.53
P/tB 3.71
EV/EBITDA 26.92
EPS(TTM)8.47
EY8.61%
EPS(NY)3.29
Fwd EY3.34%
FCF(TTM)7.4
FCFY7.52%
OCF(TTM)7.75
OCFY7.88%
SpS20.54
BVpS27.85
TBVpS26.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.85
Profitability
Industry RankSector Rank
ROA 20.47%
ROE 29.52%
ROCE 7.97%
ROIC 6.9%
ROICexc 34.56%
ROICexgc 44.67%
OM 11.58%
PM (TTM) 40.03%
GM 71.99%
FCFM 36.05%
ROA(3y)9.76%
ROA(5y)2.44%
ROE(3y)14.64%
ROE(5y)4.24%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.39%
GM growth 5Y0.19%
F-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 114.39%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 289.08%
Profit Quality 90.05%
Current Ratio 2.82
Quick Ratio 2.82
Altman-Z 6.25
F-Score5
WACC8.92%
ROIC/WACC0.77
Cap/Depr(3y)192.68%
Cap/Depr(5y)202.71%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.65%
Profit Quality(3y)418.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)352.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%196.67%
EPS Next Y-61.16%
EPS Next 2Y-32.76%
EPS Next 3Y-15.81%
EPS Next 5YN/A
Revenue 1Y (TTM)38.71%
Revenue growth 3Y41.08%
Revenue growth 5Y45.03%
Sales Q2Q%35%
Revenue Next Year17.93%
Revenue Next 2Y16.28%
Revenue Next 3Y14.23%
Revenue Next 5Y16.61%
EBIT growth 1Y105.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year120.76%
EBIT Next 3Y41.82%
EBIT Next 5Y42.92%
FCF growth 1Y52.11%
FCF growth 3Y102.3%
FCF growth 5Y92.33%
OCF growth 1Y44.77%
OCF growth 3Y93.35%
OCF growth 5Y85.39%

DUOLINGO / DUOL Fundamental Analysis FAQ

What is the fundamental rating for DUOL stock?

ChartMill assigns a fundamental rating of 6 / 10 to DUOL.


Can you provide the valuation status for DUOLINGO?

ChartMill assigns a valuation rating of 4 / 10 to DUOLINGO (DUOL). This can be considered as Fairly Valued.


Can you provide the profitability details for DUOLINGO?

DUOLINGO (DUOL) has a profitability rating of 6 / 10.


What is the financial health of DUOLINGO (DUOL) stock?

The financial health rating of DUOLINGO (DUOL) is 8 / 10.