Duolingo, Inc. (DUOL), Discounted Cash Flow Valuation

Duolingo, Inc. (DUOL) Company Profile

US | Technology | Software - Application | NASDAQ
316.07 -10.43 (-3.19%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
14.3B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
748.02M
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
88.57M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
44.94M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
1.86
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
172.46
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.00%
Exchange Name of stock exchange where the trading item trades.
NASDAQ
Avg Volume The average number of shares traded each day over the past 30 days.
906.26K
Open The opening trade price over the trading day.
324.79
Previous Close The last closing price.
326.5
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
0.91
1 day delta The range between the high and low prices over the past day.
308.57-326.3
52 weeks The range between the high and low prices over the past 52 weeks.
145.05-441.765

Total Valuation

Duolingo, Inc. has a market cap or net worth of 14.3B. The enterprise value is 13.57B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
14.3B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
13.57B

Valuation Ratios

The trailing PE ratio is 160.35. Duolingo, Inc.'s PEG ratio is 104.76.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
160.35
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
19.12
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
17.23
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
54.09
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
104.76

Enterprise Valuation

The stock's EV/EBITDA ratio is 191.35, with a EV/FCF ratio of 51.32.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
18.14
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
191.35
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
47.52
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
51.32

Financial Efficiency

Return on equity (ROE) is 11.34% and return on invested capital (ROIC) is 6.20%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
11.34%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
6.80%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
6.20%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.57
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 72.44%, with operating and profit margins of 8.41% and 11.84%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
72.44%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
8.41%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
13.68%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
11.84%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
9.48%

Income Statement

In the last 12 months, Duolingo, Inc. had revenue of 748.02M and earned 88.57M in profits. Earnings per share (EPS) was 1.86.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
748.02M
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
541.85M
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
62.93M
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
102.31M
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
88.57M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
70.91M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
62.93M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
1.86

Financial Position

The company has a trailing 12 months (ttm) current ratio of 2.61, with a ttm Debt / Equity ratio of 0.07.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
2.61
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
2.61
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.07
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.63

Dividends & Yields

This stock pays an annual dividend of 0, which amounts to a dividend yield of 0.00%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.00%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
0.62%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
1.85%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
0.00%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
0.00%

Balance Sheet

The company has 785.79M in cash and 54.66M in debt, giving a net cash position of 731.13M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
785.79M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
54.66M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
731.13M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
824.55M
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
18.35
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
679.36M

Cash Flow

In the last 12 months, operating cash flow of the company was 285.51M and capital expenditures -21.14M, giving a free cash flow of 264.37M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
285.51M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-21.14M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
264.37M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
5.88

Duolingo, Inc. News

Apr 21, 2025 - marketbeat.com
Duolingo Stock: EdTech Growth Meets Subscription Strength
Duolingo, Inc. NASDAQ: DUOL, a mobile learning platform known for its gamified language courses, has garnered attention from investors due to its rapid user growth and successful subscription model. This has led to healthy financial growth, positioning Duolingo as a high-growth consumer technology company....[read more]
Apr 16, 2025 - fool.com
These 2 Artificial Intelligence Stocks Have Decades of Growth Ahead of Them
There are tons of artificial intelligence (AI) stocks out there. If a tech company isn't making AI software, or the hardware those tools require, it probably uses AI solutions from other tech experts....[read more]
Apr 15, 2025 - zacks.com
Why Duolingo, Inc. (DUOL) Dipped More Than Broader Market Today
In the closing of the recent trading day, Duolingo, Inc. (DUOL) stood at $325.17, denoting a -0.46% change from the preceding trading day....[read more]
Apr 15, 2025 - fool.com
2 Growth Stocks Down 20% & 35% to Buy Now
In this video, I will be covering two growth stocks that are down over 25% from their peaks in February. Watch the short video to learn more, consider subscribing, and click the special offer link below....[read more]
Apr 13, 2025 - seekingalpha.com
Duolingo: A Growth Play Amid Tariff Uncertainty
Duolingo's stock has soared 327% since 2023, driven by accelerated revenue growth and achieving GAAP profitability over the last two years. The app's freemium model and viral marketing have fueled a 55% CAGR in user growth since 2021, reaching 40.5 million daily active users. Duolingo Max, powered by GPT-4, offers advanced features and aims to address speaking challenges, enhancing its competitive edge....[read more]
Apr 11, 2025 - seekingalpha.com
The Selloff In Duolingo Is An Opportunity, Maintaining Buy
Duolingo has a deep impenetrable moat because of its investment and learning flywheels. Duolingo's strong branding, loyal customer base, and innovative AI-driven products create a competitive moat that competitors can't easily replicate. This dip presents a buying opportunity for long-term investors, as Duolingo's growth story is just beginning and promises substantial future returns....[read more]
Apr 10, 2025 - seekingalpha.com
Duolingo: Still A Bargain At 35x FCF? I Think So
I love that Duolingo is growing fast and throwing off meaningful free cash flow—those two don't often go together. The fact that they have no debt and nearly a billion in cash gives me confidence, especially in a shaky macro environment. I'm bullish because they're not just coasting—they're innovating with AI, expanding into new subjects, and upselling premium plans....[read more]
Apr 9, 2025 - zacks.com
Here is What to Know Beyond Why Duolingo, Inc. (DUOL) is a Trending Stock
Recently, Zacks.com users have been paying close attention to Duolingo (DUOL). This makes it worthwhile to examine what the stock has in store....[read more]
Apr 9, 2025 - fool.com
Nasdaq Bear Market: 2 Artificial Intelligence (AI) Stocks to Confidently Buy With $650
The Nasdaq Composite (^IXIC -2.15%) includes almost every company listed on the Nasdaq stock exchange, so it's often a good proxy for the performance of the broader technology industry. As of the close on Friday, April 5, the index was down by 22% from its all-time high, which officially places it in a bear market....[read more]
Apr 7, 2025 - zacks.com
Duolingo, Inc. (DUOL) Increases Despite Market Slip: Here's What You Need to Know
Duolingo, Inc. (DUOL) concluded the recent trading session at $296.51, signifying a +1.24% move from its prior day's close....[read more]

Duolingo, Inc. Details

Country US
City Pittsburgh
Address 5900 Penn Avenue
Ticker Symbol DUOL
Exchange NASDAQ Global Select
IPO Date Jul 28, 2021
CEO Dr. Luis Alfonso von Ahn Arellano Ph.D.
Sector Technology
Industry Software - Application
Employees 830

Duolingo, Inc. Company Description

Duolingo, Inc. develops a language-learning website and mobile app in the United States and China. The company offers courses in 40 different languages, including Spanish, English, French, Japanese, German, Italian, Chinese, Portuguese, and others. It also provides a digital language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

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