DUOL Relative Valuation
DUOL'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, DUOL is overvalued; if below, it's undervalued.
Historical Valuation
Duolingo Inc (DUOL) is now in the Undervalued zone, suggesting that its current forward PS ratio of 6.78 is considered Undervalued compared with the five-year average of 10.82. The fair price of Duolingo Inc (DUOL) is between 214.87 to 383.13 according to relative valuation methord. Compared to the current price of 178.94 USD , Duolingo Inc is Undervalued By 16.72%.
Relative Value
Fair Zone
214.87-383.13
Current Price：178.94
16.72%
Undervalued
45.03
PE
1Y
3Y
5Y
19.91
EV/EBITDA
Duolingo Inc. (DUOL) has a current EV/EBITDA of 19.91. The 5-year average EV/EBITDA is 115.65. The thresholds are as follows: Strongly Undervalued below -555.00, Undervalued between -555.00 and -219.68, Fairly Valued between 450.98 and -219.68, Overvalued between 450.98 and 786.31, and Strongly Overvalued above 786.31. The current Forward EV/EBITDA of 19.91 falls within the Historic Trend Line -Fairly Valued range.
40.16
EV/EBIT
Duolingo Inc. (DUOL) has a current EV/EBIT of 40.16. The 5-year average EV/EBIT is 4.26. The thresholds are as follows: Strongly Undervalued below -312.67, Undervalued between -312.67 and -154.20, Fairly Valued between 162.73 and -154.20, Overvalued between 162.73 and 321.19, and Strongly Overvalued above 321.19. The current Forward EV/EBIT of 40.16 falls within the Historic Trend Line -Fairly Valued range.
6.78
PS
Duolingo Inc. (DUOL) has a current PS of 6.78. The 5-year average PS is 12.01. The thresholds are as follows: Strongly Undervalued below 4.03, Undervalued between 4.03 and 8.02, Fairly Valued between 15.99 and 8.02, Overvalued between 15.99 and 19.98, and Strongly Overvalued above 19.98. The current Forward PS of 6.78 falls within the Undervalued range.
18.93
P/OCF
Duolingo Inc. (DUOL) has a current P/OCF of 18.93. The 5-year average P/OCF is 169.55. The thresholds are as follows: Strongly Undervalued below -281.67, Undervalued between -281.67 and -56.06, Fairly Valued between 395.17 and -56.06, Overvalued between 395.17 and 620.78, and Strongly Overvalued above 620.78. The current Forward P/OCF of 18.93 falls within the Historic Trend Line -Fairly Valued range.
18.74
P/FCF
Duolingo Inc. (DUOL) has a current P/FCF of 18.74. The 5-year average P/FCF is 267.29. The thresholds are as follows: Strongly Undervalued below -983.01, Undervalued between -983.01 and -357.86, Fairly Valued between 892.44 and -357.86, Overvalued between 892.44 and 1517.59, and Strongly Overvalued above 1517.59. The current Forward P/FCF of 18.74 falls within the Historic Trend Line -Fairly Valued range.
Duolingo Inc (DUOL) has a current Price-to-Book (P/B) ratio of 6.22. Compared to its 3-year average P/B ratio of 13.34 , the current P/B ratio is approximately -53.34% higher. Relative to its 5-year average P/B ratio of 10.19, the current P/B ratio is about -38.91% higher. Duolingo Inc (DUOL) has a Forward Free Cash Flow (FCF) yield of approximately 4.35%. Compared to its 3-year average FCF yield of 1.87%, the current FCF yield is approximately 132.59% lower. Relative to its 5-year average FCF yield of 1.43% , the current FCF yield is about 202.87% lower.
6.22
P/B
Median3y
13.34
Median5y
10.19
4.35
FCF Yield
Median3y
1.87
Median5y
1.43
Competitors Valuation Multiple
The average P/S ratio for DUOL's competitors is 7.52, providing a benchmark for relative valuation. Duolingo Inc Corp (DUOL) exhibits a P/S ratio of 6.78, which is -9.82% above the industry average. Given its robust revenue growth of 41.08%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DUOL decreased by 50.84% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.13 to 107.54.
The secondary factor is the Revenue Growth, contributed 41.08%to the performance.
Overall, the performance of DUOL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Duolingo Inc (DUOL) currently overvalued or undervalued?
Duolingo Inc (DUOL) is now in the Undervalued zone, suggesting that its current forward PS ratio of 6.78 is considered Undervalued compared with the five-year average of 10.82. The fair price of Duolingo Inc (DUOL) is between 214.87 to 383.13 according to relative valuation methord. Compared to the current price of 178.94 USD , Duolingo Inc is Undervalued By 16.72% .
What is Duolingo Inc (DUOL) fair value?
DUOL'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. The fair price of Duolingo Inc (DUOL) is between 214.87 to 383.13 according to relative valuation methord.
How does DUOL's valuation metrics compare to the industry average?
The average P/S ratio for DUOL's competitors is 7.52, providing a benchmark for relative valuation. Duolingo Inc Corp (DUOL) exhibits a P/S ratio of 6.78, which is -9.82% above the industry average. Given its robust revenue growth of 41.08%, this premium appears sustainable.
What is the current P/B ratio for Duolingo Inc (DUOL) as of Jan 07 2026?
As of Jan 07 2026, Duolingo Inc (DUOL) has a P/B ratio of 6.22. This indicates that the market values DUOL at 6.22 times its book value.
What is the current FCF Yield for Duolingo Inc (DUOL) as of Jan 07 2026?
As of Jan 07 2026, Duolingo Inc (DUOL) has a FCF Yield of 4.35%. This means that for every dollar of Duolingo Inc’s market capitalization, the company generates 4.35 cents in free cash flow.
What is the current Forward P/E ratio for Duolingo Inc (DUOL) as of Jan 07 2026?
As of Jan 07 2026, Duolingo Inc (DUOL) has a Forward P/E ratio of 45.03. This means the market is willing to pay $45.03 for every dollar of Duolingo Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Duolingo Inc (DUOL) as of Jan 07 2026?
As of Jan 07 2026, Duolingo Inc (DUOL) has a Forward P/S ratio of 6.78. This means the market is valuing DUOL at $6.78 for every dollar of expected revenue over the next 12 months.