Duolingo Valuation
| DUOL Stock | USD 348.27 0.63 0.18% |
At this time, the firm appears to be overvalued. Duolingo shows a prevailing Real Value of $273.77 per share. The current price of the firm is $348.27. Our model computes the value of Duolingo from reviewing the firm fundamentals such as Shares Outstanding of 37.9 M, current valuation of 14.46 B, and Profit Margin of 0.13 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Duolingo's valuation include:
Price Book 18.5917 | Enterprise Value 14.5 B | Enterprise Value Ebitda 230.5385 | Price Sales 22.178 | Forward PE 112.3596 |
Overvalued
Today
Please note that Duolingo's price fluctuation is very steady at this time. Calculation of the real value of Duolingo is based on 3 months time horizon. Increasing Duolingo's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Duolingo stock is determined by what a typical buyer is willing to pay for full or partial control of Duolingo. Since Duolingo is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Duolingo Stock. However, Duolingo's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 348.27 | Real 273.77 | Target 174.71 | Hype 353.8 | Naive 347.87 |
The intrinsic value of Duolingo's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Duolingo's stock price.
Estimating the potential upside or downside of Duolingo helps investors to forecast how Duolingo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Duolingo more accurately as focusing exclusively on Duolingo's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Duolingo's intrinsic value based on its ongoing forecasts of Duolingo's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Duolingo's closest peers.
Duolingo Cash |
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Duolingo Valuation Trend
Knowing Duolingo's actual value is paramount for traders when making sound investment determinations. Using both Duolingo's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Duolingo Revenue by Product
Duolingo Total Value Analysis
Duolingo is currently estimated to have valuation of 14.46 B with market capitalization of 15.29 B, debt of 25.04 M, and cash on hands of 591.16 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Duolingo fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
14.46 B | 15.29 B | 25.04 M | 591.16 M |
Duolingo Investor Information
About 96.0% of the company shares are held by institutions such as insurance companies. The company had not issued any dividends in recent years. Based on the analysis of Duolingo's profitability, liquidity, and operating efficiency, Duolingo is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 161.3 M | 153.6 M |
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Duolingo Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Duolingo has an asset utilization ratio of 55.67 percent. This suggests that the Company is making $0.56 for each dollar of assets. An increasing asset utilization means that Duolingo is more efficient with each dollar of assets it utilizes for everyday operations.Duolingo Ownership Allocation
Duolingo holds a total of 37.9 Million outstanding shares. The majority of Duolingo outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Duolingo to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Duolingo. Please pay attention to any change in the institutional holdings of Duolingo as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Duolingo Profitability Analysis
The company reported the previous year's revenue of 531.11 M. Net Income was 16.07 M with profit before overhead, payroll, taxes, and interest of 270.06 M.About Duolingo Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Duolingo. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Duolingo based exclusively on its fundamental and basic technical indicators. By analyzing Duolingo's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Duolingo's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Duolingo. We calculate exposure to Duolingo's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Duolingo's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 389 M | 408.5 M | |
| Pretax Profit Margin | 0.03 | 0.04 | |
| Operating Profit Margin | (0.02) | (0.03) | |
| Net Profit Margin | 0.03 | 0.03 | |
| Gross Profit Margin | 0.73 | 0.58 |
Duolingo Growth Indicators
Investing in growth stocks can be very risky. If the company such as Duolingo does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 46.5 M | |
| Quarterly Earnings Growth Y O Y | 7.167 | |
| Forward Price Earnings | 112.3596 |
Duolingo Current Valuation Indicators
Duolingo's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Duolingo's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Duolingo, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Duolingo's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Duolingo's worth.When determining whether Duolingo is a strong investment it is important to analyze Duolingo's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Duolingo's future performance. For an informed investment choice regarding Duolingo Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Duolingo. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Duolingo Stock please use our How to buy in Duolingo Stock guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Duolingo. If investors know Duolingo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Duolingo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.167 | Earnings Share 1.84 | Revenue Per Share 16.035 | Quarterly Revenue Growth 0.399 | Return On Assets 0.0325 |
The market value of Duolingo is measured differently than its book value, which is the value of Duolingo that is recorded on the company's balance sheet. Investors also form their own opinion of Duolingo's value that differs from its market value or its book value, called intrinsic value, which is Duolingo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Duolingo's market value can be influenced by many factors that don't directly affect Duolingo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Duolingo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Duolingo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Duolingo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.