Duolingo Valuation
| DUOL Stock | USD 363.99 0.71 0.20% |
At this time, the firm appears to be overvalued. Duolingo shows a prevailing Real Value of $291.19 per share. The current price of the firm is $363.99. Our model computes the value of Duolingo from reviewing the firm fundamentals such as Profit Margin of 0.13 %, shares outstanding of 37.9 M, and Current Valuation of 15.15 B as well as analyzing its technical indicators and probability of bankruptcy.
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 363.99 | Real 291.19 | Hype 363.99 | Naive 370.71 |
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: Duolingo Total Value Analysis
Duolingo is currently estimated to have valuation of 15.15 B with market capitalization of 15.98 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 |
15.15 B | 15.98 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 not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.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 504.17 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.Duolingo, Inc. develops a language-learning website and mobile app in the United States and China. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania. Duolingo Inc operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 500 people.
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 | 120.4819 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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.
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.