DAO Valuation

Youdao Inc

Add to Watchlist

Advanced Chart

8.970

+0.04(0.448%)1D

Overview
Forecast
Valuation
Earnings

DAO Relative Valuation

DAO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DAO is overvalued; if below, it's undervalued.

Historical Valuation

Youdao Inc (DAO) is now in the Fair zone, suggesting that its current forward PS ratio of 1.22 is considered Fairly compared with the five-year average of -13.57. The fair price of Youdao Inc (DAO) is between 6.18 to 21.01 according to relative valuation methord.

Relative Value

Fair Zone

6.18-21.01

Current Price：8.97

Fair

35.24

Trailing

Forward

24.05

EV/EBITDA

Youdao Inc. (DAO) has a current EV/EBITDA of 24.05. The 5-year average EV/EBITDA is -0.97. The thresholds are as follows: Strongly Undervalued below -45.96, Undervalued between -45.96 and -23.47, Fairly Valued between 21.52 and -23.47, Overvalued between 21.52 and 44.02, and Strongly Overvalued above 44.02. The current Forward EV/EBITDA of 24.05 falls within the Overvalued range.

30.32

EV/EBIT

Youdao Inc. (DAO) has a current EV/EBIT of 30.32. The 5-year average EV/EBIT is -0.08. The thresholds are as follows: Strongly Undervalued below -49.36, Undervalued between -49.36 and -24.72, Fairly Valued between 24.56 and -24.72, Overvalued between 24.56 and 49.19, and Strongly Overvalued above 49.19. The current Forward EV/EBIT of 30.32 falls within the Overvalued range.

1.22

Youdao Inc. (DAO) has a current PS of 1.22. The 5-year average PS is 1.53. The thresholds are as follows: Strongly Undervalued below -0.98, Undervalued between -0.98 and 0.28, Fairly Valued between 2.79 and 0.28, Overvalued between 2.79 and 4.05, and Strongly Overvalued above 4.05. The current Forward PS of 1.22 falls within the Historic Trend Line -Fairly Valued range.

21.23

P/OCF

Youdao Inc. (DAO) has a current P/OCF of 21.23. The 5-year average P/OCF is -7.22. The thresholds are as follows: Strongly Undervalued below -95.36, Undervalued between -95.36 and -51.29, Fairly Valued between 36.85 and -51.29, Overvalued between 36.85 and 80.92, and Strongly Overvalued above 80.92. The current Forward P/OCF of 21.23 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Youdao Inc. (DAO) has a current P/FCF of 0.00. The 5-year average P/FCF is -3.73. The thresholds are as follows: Strongly Undervalued below -63.47, Undervalued between -63.47 and -33.60, Fairly Valued between 26.15 and -33.60, Overvalued between 26.15 and 56.02, and Strongly Overvalued above 56.02. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Youdao Inc (DAO) has a current Price-to-Book (P/B) ratio of -3.65. Compared to its 3-year average P/B ratio of -2.46 , the current P/B ratio is approximately 48.40% higher. Relative to its 5-year average P/B ratio of -15.33, the current P/B ratio is about -76.22% higher. Youdao Inc (DAO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -1.92%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -2.15% , the current FCF yield is about -100.00% lower.

-3.66

P/B

Median3y

-2.46

Median5y

-15.33

0.00

FCF Yield

Median3y

-1.92

Median5y

-2.15

Competitors Valuation Multiple

The average P/S ratio for DAO's competitors is 2.69, providing a benchmark for relative valuation. Youdao Inc Corp (DAO) exhibits a P/S ratio of 1.22, which is -54.79% above the industry average. Given its robust revenue growth of 7.25%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Jumia Technologies AG

Performance Decomposition

Market capitalization of DAO increased by 171.82% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.65 to 33.34.

The secondary factor is the Revenue Growth, contributed 7.25%to the performance.

Overall, the performance of DAO in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.25%

1.32B → 1.42B

Revenue Growth

-80.92%

-7.60 → -1.45

Margin Expansion

245.49%

9.65 → 33.34

P/E Change

171.82%