Latest Ratios: P/E Ratio 112.9x · EV/EBITDA 53.3x · ROE N/A. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.8B | $1.2B | $874M | $478M | $607M | $1.5B | $3.0B | $1.3B | — | — |
| Enterprise Value | $2.0B | $2.6B | $2.1B | $1.6B | $1.3B | $2.4B | $3.4B | $2.1B | — | — |
| P/E Ratio → | 112.85 | 11.20 | 10.57 | — | — | — | — | — | — | — |
| P/S Ratio | 2.03 | 0.20 | 0.16 | 0.09 | 0.12 | 0.38 | 1.19 | 1.11 | — | — |
| P/B Ratio | — | — | — | — | — | — | — | 4.46 | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.44 | 0.38 | 0.30 | 0.26 | 0.61 | 1.33 | 1.71 | — | — |
| EV / EBITDA | 53.34 | 10.41 | 11.26 | — | — | — | — | — | — | — |
| EV / EBIT | 58.82 | 14.80 | 13.84 | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.3% | 44.3% | 48.9% | 51.4% | 51.6% | 49.5% | 43.8% | 27.7% | 29.6% | 35.5% |
| Operating Margin | 3.9% | 3.9% | 2.9% | -8.0% | -13.7% | -21.2% | -33.7% | -38.1% | -30.0% | -28.5% |
| Net Profit Margin | 1.8% | 1.8% | 1.5% | -10.2% | -14.5% | -24.8% | -69.4% | -49.8% | -28.6% | -29.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | -199.8% | — | — |
| ROA | 5.7% | 5.7% | 4.7% | -27.9% | -29.6% | -42.3% | -84.3% | -44.5% | -53.5% | -82.5% |
| ROIC | — | — | — | — | — | -319.2% | — | -95.6% | — | — |
| ROCE | — | — | — | — | — | — | — | -140.3% | — | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | 2.99 | — | — |
| Debt / EBITDA | 7.35 | 7.35 | 9.77 | — | — | — | — | — | — | — |
| Net Debt / Equity | — | — | — | — | — | — | — | 2.41 | — | — |
| Net Debt / EBITDA | 5.60 | 5.60 | 6.65 | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.88 | 2.88 | 2.08 | -6.76 | -14.66 | -28.42 | -25.92 | -14.19 | -4.37 | -4.52 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.59 | 0.59 | 0.50 | 0.42 | 0.59 | 0.75 | 0.55 | 1.15 | 0.46 | 0.13 |
| Quick Ratio | 0.54 | 0.54 | 0.45 | 0.35 | 0.52 | 0.66 | 0.51 | 1.11 | 0.44 | 0.13 |
| Cash Ratio | 0.25 | 0.25 | 0.22 | 0.17 | 0.32 | 0.27 | 0.35 | 0.92 | 0.33 | 0.04 |
| Asset Turnover | — | 2.99 | 3.10 | 3.23 | 2.20 | 1.52 | 1.22 | 0.58 | 1.18 | 2.82 |
| Inventory Turnover | 23.39 | 23.39 | 16.47 | 12.08 | 10.45 | 7.94 | 11.93 | 11.91 | 21.62 | 190.54 |
| Days Sales Outstanding | — | 43.40 | 32.66 | 25.75 | 30.07 | 23.13 | 44.52 | 65.18 | 45.80 | 59.53 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.9% | 8.9% | 9.5% | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 7.1% | 26.7% | 8.3% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 7.1% | 26.7% | 8.3% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $120M | $118M | $121M | $113M | $122M | $113M | $95M | $99M | $99M |
Includes 30+ ratios · 9 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DAO stock.
Youdao, Inc.'s current P/E ratio is 112.9x. The historical average is 10.9x. This places it at the 100th percentile of its historical range.
Youdao, Inc.'s current EV/EBITDA is 53.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
Based on historical data, Youdao, Inc. is trading at a P/E of 112.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Youdao, Inc. has 44.3% gross margin and 3.9% operating margin.
Youdao, Inc.'s Debt/EBITDA ratio is 7.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative equity and high leverage
Valuation Disconnect Between TTM and Forward Multiples
The stark divergence between a TTM P/E of 124.34 and a forward P/E of 9.99, as reported in current valuation data, suggests the market is pricing in a dramatic earnings recovery that has yet to materialize in recent quarterly results.
This valuation gap implies the market is either anticipating a significant margin expansion or a sharp earnings rebound from the thin 5.0% net margin seen in 2026Q2. However, the company's historical operating margin volatility, ranging from -5.5% to 8.0% over the past ten quarters, makes such a recovery uncertain. The forward EV/EBITDA of 6.23 appears more reasonable but still requires the company to sustain its recent gross margin recovery and control SG&A expenses, which consistently consume over 30% of revenue.
Gross Margin Recovery Fails to Translate to Bottom Line
Despite gross margin improving to 48.9% in 2026Q2, the net margin remains a thin 5.0%, indicating that high operating expenses, particularly SG&A, are consuming the vast majority of gross profits and limiting true earning power.
The gross margin recovery from a low of 42.2% in 2025Q3 is a positive sign for pricing power in the Learning Services segment. However, the operating margin of 7.6% is still below the 8.0% achieved in 2025Q1 on lower revenue, suggesting limited operating leverage. This pattern indicates that profitability is highly sensitive to revenue scale and cost control, with any re-acceleration in marketing spend or a downturn in higher-margin services quickly eroding gains.
ROA Volatility Reflects Unstable Earning Power
Return on Assets has been highly volatile, swinging from -6.1% in 2024Q2 to 5.0% in 2024Q3 and back to 3.7% in 2026Q2, suggesting the company's ability to generate returns from its asset base is inconsistent and dependent on quarterly operational execution.
The absence of ROE and ROIC data, combined with a negative equity base, makes a comprehensive return on capital analysis impossible. The volatile ROA trend, however, aligns with the erratic net margin performance, indicating that returns are driven more by short-term margin fluctuations than by sustainable improvements in asset efficiency. This instability suggests the business model has not yet achieved a consistent compounding of capital.
Working Capital Cycle Lengthening Amidst Margin Pressure
The cash conversion cycle has expanded to 45 days in 2026Q2 from 23 days in 2023Q4, primarily driven by a significant increase in days sales outstanding to 40 days, which may indicate growing customer payment delays or channel stuffing.
The lengthening CCC is a concerning trend that ties up cash and could exacerbate liquidity pressures given the company's negative equity position. The increase in DSO from 23 to 40 days over the period is particularly notable and warrants investigation into collection practices and customer credit terms. While days inventory outstanding has improved, the overall efficiency deterioration suggests the company is losing leverage with its customers or facing a more competitive sales environment.
Leverage Analysis Rendered Meaningless by Negative Equity
With a negative equity base of -$1.8B as of 2026Q2, traditional leverage ratios like D/E are meaningless, and the company's reliance on creditor financing is underscored by a D/EBITDA ratio that has spiked to 16.95 from 21.17 a year prior.
The negative equity position, driven by accumulated deficits, means the company is entirely reliant on operational cash flow and creditor financing. The interest coverage ratio of 8.40 in 2026Q2 appears adequate but is highly sensitive to EBITDA volatility, as seen in the swing from 0.02 in 2025Q2. This structure presents significant refinancing risk, especially if profitability deteriorates, and investors should monitor the maturity profile of the $1.7B in total debt closely.
The Misleading Promise of Forward P/E
The forward P/E of 9.99 is the most commonly misapplied ratio for this business model, as it obscures the extreme volatility in earnings and the structural challenges of a negative equity balance sheet that make future profit forecasts highly unreliable.
This metric assumes a smooth and predictable earnings trajectory, which is fundamentally at odds with DAO's history of swinging from significant losses to marginal profits. The ratio also ignores the company's capital structure, where negative equity means all future earnings accrue to creditors first. A more appropriate metric would be EV/EBITDA, which better captures the operating cash flow generation potential independent of the distorted equity base and volatile net income.