DUOL PE Ratio & Valuation,Is DUOL Overvalued

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 7.55 is considered Undervalued compared with the five-year average of 10.39. The fair price of Duolingo Inc (DUOL) is between 217.44 to 382.79 according to relative valuation methord. Compared to the current price of 196.28 USD , Duolingo Inc is Undervalued By 9.73%.

Relative Value

Fair Zone

217.44-382.79

Current Price：196.28

9.73%

Undervalued

50.09

22.47

EV/EBITDA

Duolingo Inc. (DUOL) has a current EV/EBITDA of 22.47. The 5-year average EV/EBITDA is 116.78. The thresholds are as follows: Strongly Undervalued below -557.53, Undervalued between -557.53 and -220.37, Fairly Valued between 453.94 and -220.37, Overvalued between 453.94 and 791.09, and Strongly Overvalued above 791.09. The current Forward EV/EBITDA of 22.47 falls within the Historic Trend Line -Fairly Valued range.

45.31

EV/EBIT

Duolingo Inc. (DUOL) has a current EV/EBIT of 45.31. The 5-year average EV/EBIT is 3.82. The thresholds are as follows: Strongly Undervalued below -314.89, Undervalued between -314.89 and -155.53, Fairly Valued between 163.17 and -155.53, Overvalued between 163.17 and 322.52, and Strongly Overvalued above 322.52. The current Forward EV/EBIT of 45.31 falls within the Historic Trend Line -Fairly Valued range.

7.55

Duolingo Inc. (DUOL) has a current PS of 7.55. The 5-year average PS is 12.07. The thresholds are as follows: Strongly Undervalued below 4.12, Undervalued between 4.12 and 8.09, Fairly Valued between 16.04 and 8.09, Overvalued between 16.04 and 20.01, and Strongly Overvalued above 20.01. The current Forward PS of 7.55 falls within the Undervalued range.

21.05

P/OCF

Duolingo Inc. (DUOL) has a current P/OCF of 21.05. The 5-year average P/OCF is 171.34. The thresholds are as follows: Strongly Undervalued below -281.37, Undervalued between -281.37 and -55.02, Fairly Valued between 397.69 and -55.02, Overvalued between 397.69 and 624.04, and Strongly Overvalued above 624.04. The current Forward P/OCF of 21.05 falls within the Historic Trend Line -Fairly Valued range.

20.85

P/FCF

Duolingo Inc. (DUOL) has a current P/FCF of 20.85. The 5-year average P/FCF is 270.24. The thresholds are as follows: Strongly Undervalued below -986.29, Undervalued between -986.29 and -358.03, Fairly Valued between 898.50 and -358.03, Overvalued between 898.50 and 1526.77, and Strongly Overvalued above 1526.77. The current Forward P/FCF of 20.85 falls within the Historic Trend Line -Fairly Valued range.

Duolingo Inc (DUOL) has a current Price-to-Book (P/B) ratio of 6.92. Compared to its 3-year average P/B ratio of 13.31 , the current P/B ratio is approximately -47.99% higher. Relative to its 5-year average P/B ratio of 10.23, the current P/B ratio is about -32.35% higher. Duolingo Inc (DUOL) has a Forward Free Cash Flow (FCF) yield of approximately 3.91%. Compared to its 3-year average FCF yield of 1.82%, the current FCF yield is approximately 114.88% lower. Relative to its 5-year average FCF yield of 1.40% , the current FCF yield is about 178.76% lower.

6.92

P/B

Median3y

13.31

Median5y

10.23

3.91

FCF Yield

Median3y

1.82

Median5y

1.40

Competitors Valuation Multiple

The average P/S ratio for DUOL's competitors is 7.07, providing a benchmark for relative valuation. Duolingo Inc Corp (DUOL) exhibits a P/S ratio of 7.55, which is 6.79% above the industry average. Given its robust revenue growth of 41.08%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DUOL decreased by 39.46% 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.

41.08%

192.59M → 271.71M

Revenue Growth

786.56%

12.13 → 107.54

Margin Expansion

-867.10%

-3.18 → 24.43

P/E Change

-39.46%

324.23 → 196.28

Mkt Cap Growth

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Frequently Asked Questions

Is Duolingo Inc (DUOL) currently overvalued or undervalued?

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 217.44 to 382.79 according to relative valuation methord.

How does DUOL's valuation metrics compare to the industry average?

What is the current P/B ratio for Duolingo Inc (DUOL) as of Dec 15 2025?

As of Dec 15 2025, Duolingo Inc (DUOL) has a P/B ratio of 6.92. This indicates that the market values DUOL at 6.92 times its book value.

What is the current FCF Yield for Duolingo Inc (DUOL) as of Dec 15 2025?

As of Dec 15 2025, Duolingo Inc (DUOL) has a FCF Yield of 3.91%. This means that for every dollar of Duolingo Inc’s market capitalization, the company generates 3.91 cents in free cash flow.

What is the current Forward P/E ratio for Duolingo Inc (DUOL) as of Dec 15 2025?

As of Dec 15 2025, Duolingo Inc (DUOL) has a Forward P/E ratio of 50.09. This means the market is willing to pay $50.09 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 Dec 15 2025?

As of Dec 15 2025, Duolingo Inc (DUOL) has a Forward P/S ratio of 7.55. This means the market is valuing DUOL at $7.55 for every dollar of expected revenue over the next 12 months.

DUOL Valuation