Duolingo, Inc. (DUOL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+245.2%

$476.42

vs $138.01 price

Levered DCF

$665.04

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

7.22

Safe zone

Rating

S-

Overall 5 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	19.39×	158.94×	648.14×	-47.11×	-67.59×	-315.93×	-365.82×
P/B	5.96×	17.11×	16.1×	5.18×	7.92×	48.95×	92.89×
P/S	7.74×	18.86×	19.87×	7.6×	16.19×	30.86×	70.51×
EV / EBITDA	36.03×	118.21×	395.26×	-41.43×	-61.85×	-362.07×	-424.16×
Gross margin	71.7%	72.0%	72.3%	72.0%	72.1%	71.2%	69.8%
Operating margin	13.6%	8.5%	-2.4%	-17.5%	-22.4%	-9.7%	-18.2%
Net margin	39.9%	11.8%	3.0%	-16.1%	-24.0%	-9.8%	-19.2%
Current ratio	2.61×	2.61×	3.24×	3.84×	5.2×	2.41×	2.46×
Debt / equity	0.07×	0.07×	0.04×	0.05×	0.06×	0.09×	0.19×
Interest coverage	0×	0×	0×	0×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	30.7%	10.7%	2.5%	-11.0%	-11.7%	-15.5%	-25.2%
Return on invested capital	9.8%	6.2%	-1.7%	-11.3%	-10.3%	-14.1%	-20.2%
Return on assets	20.8%	6.8%	1.7%	-8.0%	-9.1%	-9.0%	-14.3%
Free cash flow yield	4.6%	1.9%	1.4%	1.7%	0.1%	0.3%	-0.0%
Earnings yield	5.2%	0.6%	0.2%	-2.1%	-1.5%	-0.3%	-0.3%
Enterprise value	$7.1B	$13.4B	$9.8B	$2.2B	$3.5B	$4.9B	$4.9B
Net debt / EBITDA	-4.79×	-6.44×	-29.05×	10.78×	9.11×	8.26×	4.26×
Cash conversion cycle (days)	52	52	92	77	43	60	22