DUOLINGO (DUOL) Fundamental Analysis & Valuation

NASDAQ:DUOL • US26603R1068

Current stock price

98.78 USD
+7.32 (+8%)
At close:
99.45 USD
+0.67 (+0.68%)
After Hours:

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.
  • DUOL had a positive operating cash flow in each of the past 5 years.
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 93.06% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 29.52%, DUOL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • DUOL has a better Return On Invested Capital (6.90%) than 66.67% 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

  • With an excellent Profit Margin value of 40.03%, DUOL belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
  • DUOL has a Operating Margin of 11.58%. This is in the better half of the industry: DUOL outperforms 73.61% of its industry peers.
  • With an excellent Gross Margin value of 71.99%, DUOL belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
  • In the last couple of years the Gross Margin of DUOL has remained more or less at the same level.
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

  • DUOL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for DUOL has been increased compared to 1 year ago.
  • The number of shares outstanding for DUOL has been increased compared to 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 5.91. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
  • DUOL's Altman-Z score of 5.91 is amongst the best of the industry. DUOL outperforms 90.28% of its industry peers.
  • 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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.91
ROIC/WACC0.78
WACC8.9%
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

  • A Current Ratio of 2.82 indicates that DUOL has no problem at all paying its short term obligations.
  • The Current ratio of DUOL (2.82) is better than 87.50% 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 87.50% 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

  • Based on estimates for the next years, DUOL will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.44% on average per year.
  • 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-65.14%
EPS Next 2Y-37.79%
EPS Next 3Y-18.44%
EPS Next 5YN/A
Revenue Next Year17.08%
Revenue Next 2Y15.58%
Revenue Next 3Y14.37%
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

  • DUOL is valuated reasonably with a Price/Earnings ratio of 11.66.
  • DUOL's Price/Earnings ratio is a bit cheaper when compared to the industry. DUOL is cheaper than 77.78% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.38. DUOL is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 33.45, which means the current valuation is very expensive for DUOL.
  • The rest of the industry has a similar Price/Forward Earnings ratio as DUOL.
  • The average S&P500 Price/Forward Earnings ratio is at 38.20. DUOL is around the same levels.
Industry RankSector Rank
PE 11.66
Fwd PE 33.45
DUOL Price Earnings VS Forward Price EarningsDUOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DUOL is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, DUOL is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.34
EV/EBITDA 24.33
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

  • The decent profitability rating of DUOL may justify a higher PE ratio.
  • DUOL's earnings are expected to decrease with -18.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.79%
EPS Next 3Y-18.44%

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%

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DUOL Fundamentals: All Metrics, Ratios and Statistics

DUOLINGO

NASDAQ:DUOL (4/15/2026, 8:00:02 PM)

After market: 99.45 +0.67 (+0.68%)

98.78

+7.32 (+8%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-27
Earnings (Next)05-04
Inst Owners91.29%
Inst Owner Change-0.02%
Ins Owners1.21%
Ins Owner Change29.06%
Market Cap4.64B
Revenue(TTM)1.04B
Net Income(TTM)386.02M
Analysts67.74
Price Target154.43 (56.34%)
Short Float %20.48%
Short Ratio2.84
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)-46.75%
PT rev (3m)-49.2%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)-10.25%
EPS NY rev (3m)-33.39%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-4.27%
Valuation
Industry RankSector Rank
PE 11.66
Fwd PE 33.45
P/S 4.81
P/FCF 13.34
P/OCF 12.74
P/B 3.55
P/tB 3.73
EV/EBITDA 24.33
EPS(TTM)8.47
EY8.57%
EPS(NY)2.95
Fwd EY2.99%
FCF(TTM)7.4
FCFY7.49%
OCF(TTM)7.75
OCFY7.85%
SpS20.54
BVpS27.85
TBVpS26.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.8522 (-26.25%)
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 5.91
F-Score5
WACC8.9%
ROIC/WACC0.78
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-65.14%
EPS Next 2Y-37.79%
EPS Next 3Y-18.44%
EPS Next 5YN/A
Revenue 1Y (TTM)38.71%
Revenue growth 3Y41.08%
Revenue growth 5Y45.03%
Sales Q2Q%35%
Revenue Next Year17.08%
Revenue Next 2Y15.58%
Revenue Next 3Y14.37%
Revenue Next 5Y16.61%
EBIT growth 1Y105.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.01%
EBIT Next 3Y41.29%
EBIT Next 5Y42.61%
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.


What is the profitability of DUOL stock?

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


Can you provide the financial health for DUOL stock?

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


Can you provide the expected EPS growth for DUOL stock?

The Earnings per Share (EPS) of DUOLINGO (DUOL) is expected to decline by -65.14% in the next year.