Overview Dividends

(DUOL) Duolingo - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US26603R1068

Language Courses, English Proficiency Test

DUOL EPS (Earnings per Share)

EPS Growth (3Y CAGR): 57.92%

DUOL Revenue

Revenue Growth (3Y CAGR): 37.96%
Revenue Trend (3Y Correlation): 99.9%

Description: DUOL Duolingo

Duolingo Inc (NASDAQ:DUOL) is a mobile learning platform that offers courses in 40 different languages through its app, with a presence in the US, UK, and internationally. The company also provides a digital English language proficiency assessment exam, diversifying its revenue streams beyond language learning.

From a business perspective, Duolingos key strengths include its large user base, gamification approach to learning, and freemium model that generates revenue through subscriptions and advertising. With a market capitalization of $16.9 billion, Duolingo has demonstrated significant growth and scalability. Key Performance Indicators (KPIs) to watch include user acquisition costs, retention rates, and average revenue per user (ARPU).

Analyzing the companys financials, we can observe a high Price-to-Earnings (P/E) ratio of 181.77, indicating high growth expectations. The forward P/E ratio of 131.58 suggests that the market expects earnings to grow in the future. Return on Equity (RoE) stands at 11.70%, indicating a relatively modest return on shareholders equity. Other important metrics to consider include revenue growth rate, gross margin, and operating cash flow margin.

To further evaluate Duolingos stock, we can examine its competitive landscape, market trends, and potential disruptors. The ed-tech industry is rapidly evolving, with increasing demand for online learning platforms. Duolingos ability to innovate and expand its offerings will be crucial in maintaining its market position. We should monitor metrics such as market share, customer satisfaction, and brand recognition to gauge the companys competitive strength.

DUOL Stock Overview

Market Cap in USD	16,970m
Sub-Industry	Education Services
IPO / Inception	2021-07-28

DUOL Stock Ratings

Growth Rating	69.5
Fundamental	73.2%
Dividend Rating	-
Rel. Strength	32.0
Analysts	3.87 of 5
Fair Price Momentum	315.94 USD
Fair Price DCF	159.12 USD

DUOL Dividends

Currently no dividends paid

DUOL Growth Ratios

Growth Correlation 3m	-96.5%
Growth Correlation 12m	71.5%
Growth Correlation 5y	82.7%
CAGR 5y	23.47%
CAGR/Max DD 5y	0.34
Sharpe Ratio 12m	0.91
Alpha	36.24
Beta	1.555
Volatility	69.75%
Current Volume	1066.2k
Average Volume 20d	1066.2k
Stop Loss	304 (-7%)
Signal	-0.73

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (117.2m TTM) > 0 and > 6% of Revenue (6% = 53.1m TTM)

FCFTA 0.21 (>2.0%) and ΔFCFTA 2.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 96.32% (prev 114.1%; Δ -17.76pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.22 (>3.0%) and CFO 335.9m > Net Income 117.2m (YES >=105%, WARN >=100%)

Net Debt (-882.4m) to EBITDA (116.7m) ratio: -7.56 <= 3.0 (WARN <= 3.5)

Current Ratio 2.81 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (49.8m) change vs 12m ago 4.25% (target <= -2.0% for YES)

Gross Margin 72.05% (prev 72.72%; Δ -0.67pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 66.01% (prev 55.68%; Δ 10.32pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

error: Interest Coverage Ratio cannot be calculated (needs EBITDA TTM and Interest Expense TTM)

Altman Z'' 3.96

(A) 0.55 = (Total Current Assets 1.32b - Total Current Liabilities 471.4m) / Total Assets 1.54b

(B) -0.03 = Retained Earnings (Balance) -45.9m / Total Assets 1.54b

(D) -0.08 = Book Value of Equity -45.9m / Total Liabilities 565.5m

Total Rating: 3.96 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 73.19

1. Piotroski 6.0pt = 1.0

2. FCF Yield 2.04% = 1.02

3. FCF Margin 36.82% = 7.50

4. Debt/Equity 0.10 = 2.50

5. Debt/Ebitda 0.83 = 1.98

6. ROIC - WACC -1.54% = -1.92

7. RoE 13.32% = 1.11

8. Rev. Trend 99.93% = 5.00

9. Rev. CAGR 37.96% = 2.50

10. EPS Trend data missing

11. EPS CAGR 57.92% = 2.50

What is the price of DUOL shares?

As of August 17, 2025, the stock is trading at USD 326.93 with a total of 1,066,226 shares traded.
Over the past week, the price has changed by -11.72%, over one month by -13.58%, over three months by -38.38% and over the past year by +61.57%.

Is Duolingo a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Duolingo (NASDAQ:DUOL) is currently (August 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 73.19 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of DUOL is around 315.94 USD . This means that DUOL is currently overvalued and has a potential downside of -3.36%.

Is DUOL a buy, sell or hold?

Duolingo has received a consensus analysts rating of 3.87. Therefore, it is recommended to buy DUOL.

Strong Buy: 6
Buy: 8
Hold: 9
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the DUOL price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	497.2	52.1%
Analysts Target Price	506.1	54.8%
ValueRay Target Price	362.3	10.8%

Last update: 2025-08-11 02:06

DUOL Fundamental Data Overview

Market Cap USD = 16.97b (16.97b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 1.10b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 151.7787
P/E Forward = 135.1351
P/S = 19.1715
P/B = 17.3686
Beta = 0.863
Revenue TTM = 885.2m USD
EBIT TTM = 103.1m USD
EBITDA TTM = 116.7m USD
Long Term Debt = 94.1m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 2.96m USD (from shortTermDebt, last quarter)
Debt = 97.1m USD (Calculated: Short Term 2.96m + Long Term 94.1m)
Net Debt = -882.4m USD (from netDebt column, last quarter)
Enterprise Value = 15.97b USD (16.97b + Debt 97.1m - CCE 1.10b)
Interest Coverage Ratio = unknown (Ebit TTM 103.1m / Interest Expense TTM 0.0)
FCF Yield = 2.04% (FCF TTM 325.9m / Enterprise Value 15.97b)
FCF Margin = 36.82% (FCF TTM 325.9m / Revenue TTM 885.2m)
Net Margin = 13.24% (Net Income TTM 117.2m / Revenue TTM 885.2m)
Gross Margin = 72.05% ((Revenue TTM 885.2m - Cost of Revenue TTM 247.4m) / Revenue TTM)
Tobins Q-Ratio = -347.7 (set to none) (Enterprise Value 15.97b / Book Value Of Equity -45.9m)
Interest Expense / Debt = 0.19% (Interest Expense 182.0k / Debt 97.1m)
Taxrate = 13.42% (from yearly Income Tax Expense: 13.7m / 102.3m)
NOPAT = 89.3m (EBIT 103.1m * (1 - 13.42%))
Current Ratio = 2.81 (Total Current Assets 1.32b / Total Current Liabilities 471.4m)
Debt / Equity = 0.10 (Debt 97.1m / last Quarter total Stockholder Equity 977.0m)
Debt / EBITDA = 0.83 (Net Debt -882.4m / EBITDA 116.7m)
Debt / FCF = 0.30 (Debt 97.1m / FCF TTM 325.9m)
Total Stockholder Equity = 879.5m (last 4 quarters mean)
RoA = 7.60% (Net Income 117.2m, Total Assets 1.54b )
RoE = 13.32% (Net Income TTM 117.2m / Total Stockholder Equity 879.5m)
RoCE = 10.59% (Ebit 103.1m / (Equity 879.5m + L.T.Debt 94.1m))
RoIC = 10.15% (NOPAT 89.3m / Invested Capital 879.5m)
WACC = 11.68% (E(16.97b)/V(17.07b) * Re(11.75%)) + (D(97.1m)/V(17.07b) * Rd(0.19%) * (1-Tc(0.13)))
Shares Correlation 5-Years: 90.0 | Cagr: 5.51%
Discount Rate = 11.75% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 71.03% ; FCFE base≈279.6m ; Y1≈357.8m ; Y5≈664.2m
Fair Price DCF = 159.1 (DCF Value 6.32b / Shares Outstanding 39.7m; 5y FCF grow 30.0% → 3.0% )
Revenue Correlation: 99.93 | Revenue CAGR: 37.96%
Revenue Growth Correlation: -73.01%
EPS Correlation: N/A | EPS CAGR: 57.92%
EPS Growth Correlation: 31.66%

Additional Sources for DUOL Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle