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): 125.29%
EPS Trend (3Y Correlation): 67.4%

DUOL Revenue

Revenue Growth (3Y CAGR): 42.06%
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	15,629m
Sub-Industry	Education Services
IPO / Inception	2021-07-28

DUOL Stock Ratings

Growth Rating	60.4%
Fundamental	76.3%
Dividend Rating	-
Return 12m vs S&P 500	-5.29%
Analyst Rating	3.87 of 5

DUOL Dividends

Currently no dividends paid

DUOL Growth Ratios

Growth Correlation 3m	-42.2%
Growth Correlation 12m	6.6%
Growth Correlation 5y	84%
CAGR 5y	58.34%
CAGR/Max DD 3y (Calmar Ratio)	1.17
CAGR/Mean DD 3y (Pain Ratio)	4.12
Sharpe Ratio 12m	0.71
Alpha	-4.43
Beta	0.853
Volatility	57.16%
Current Volume	967.8k
Average Volume 20d	1454.3k
Stop Loss	296.6 (-6.6%)
Signal	0.30

Piotroski VR‑10 (Strict, 0-10) 5.5

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

FCFTA 0.21 (>2.0%) and ΔFCFTA 11.49pp (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 (98.0m) ratio: -9.01 <= 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 73.31%; Δ -1.26pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 47.54% (prev 29.09%; Δ 18.45pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -1.88 (EBITDA TTM 98.0m / Interest Expense TTM -44.8m) >= 6 (WARN >= 3)

Altman Z'' 3.75

(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: 3.75 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 76.27

1. Piotroski 5.50pt = 0.50

2. FCF Yield 2.23% = 1.11

3. FCF Margin 36.82% = 7.50

4. Debt/Equity 0.10 = 2.50

5. Debt/Ebitda -9.01 = 2.50

6. ROIC - WACC (= 0.15)% = 0.18

7. RoE 13.32% = 1.11

8. Rev. Trend 99.93% = 7.50

9. EPS Trend 67.42% = 3.37

What is the price of DUOL shares?

As of October 22, 2025, the stock is trading at USD 317.61 with a total of 967,770 shares traded.
Over the past week, the price has changed by -4.51%, over one month by +2.67%, over three months by -10.75% and over the past year by +10.26%.

Is Duolingo a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Duolingo (NASDAQ:DUOL) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 76.27 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 358.06 USD . This means that DUOL is currently undervalued and has a potential upside of +12.74% (Margin of Safety).

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	449.2	41.4%
Analysts Target Price	449.2	41.4%
ValueRay Target Price	401.4	26.4%

Last update: 2025-10-17 02:29

DUOL Fundamental Data Overview

Market Cap USD = 15.63b (15.63b USD * 1.0 USD.USD)
P/E Trailing = 138.6504
P/E Forward = 69.4444
P/S = 17.6568
P/B = 14.6794
Beta = 0.853
Revenue TTM = 885.2m USD
EBIT TTM = 84.4m USD
EBITDA TTM = 98.0m USD
Long Term Debt = 93.8m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 2.96m USD (from shortTermDebt, last quarter)
Debt = 93.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -882.4m USD (from netDebt column, last quarter)
Enterprise Value = 14.62b USD (15.63b + Debt 93.8m - CCE 1.10b)
Interest Coverage Ratio = -1.88 (Ebit TTM 84.4m / Interest Expense TTM -44.8m)
FCF Yield = 2.23% (FCF TTM 325.9m / Enterprise Value 14.62b)
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)
Gross Margin QoQ = 72.38% (prev 71.12%)
Tobins Q-Ratio = 9.48 (Enterprise Value 14.62b / Total Assets 1.54b)
Interest Expense / Debt = 0.19% (Interest Expense 182.0k / Debt 93.8m)
Taxrate = 3.59% (1.67m / 46.5m)
NOPAT = 81.4m (EBIT 84.4m * (1 - 3.59%))
Current Ratio = 2.81 (Total Current Assets 1.32b / Total Current Liabilities 471.4m)
Debt / Equity = 0.10 (Debt 93.8m / totalStockholderEquity, last quarter 977.0m)
Debt / EBITDA = -9.01 (Net Debt -882.4m / EBITDA 98.0m)
Debt / FCF = -2.71 (Net Debt -882.4m / FCF TTM 325.9m)
Total Stockholder Equity = 879.5m (last 4 quarters mean from totalStockholderEquity)
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 = 8.67% (EBIT 84.4m / Capital Employed (Equity 879.5m + L.T.Debt 93.8m))
RoIC = 9.25% (NOPAT 81.4m / Invested Capital 879.5m)
WACC = 9.11% (E(15.63b)/V(15.72b) * Re(9.16%) + D(93.8m)/V(15.72b) * Rd(0.19%) * (1-Tc(0.04)))
Discount Rate = 9.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.81%
[DCF Debug] Terminal Value 77.90% ; FCFE base≈279.6m ; Y1≈345.0m ; Y5≈588.6m
Fair Price DCF = 205.3 (DCF Value 8.15b / Shares Outstanding 39.7m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 67.42 | EPS CAGR: 125.3% | SUE: -2.49 | # QB: 0
Revenue Correlation: 99.93 | Revenue CAGR: 42.06% | SUE: 4.0 | # QB: 6

Additional Sources for DUOL Stock

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