Latest Ratios: P/E Ratio 17.0x · EV/EBITDA 37.6x · ROE 38.1%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.8B | $8.5B | $15.3B | $10.6B | $2.8B | $4.1B | — | — |
| Enterprise Value | $5.9B | $7.5B | $14.5B | $9.8B | $2.2B | $3.5B | — | — |
| P/E Ratio → | 17.03 | 20.48 | 172.46 | 648.14 | — | — | — | — |
| P/S Ratio | 6.56 | 8.17 | 20.42 | 19.87 | 7.60 | 16.19 | — | — |
| P/B Ratio | 5.24 | 6.29 | 18.52 | 16.10 | 5.18 | 7.92 | — | — |
| P/FCF | 18.40 | 22.93 | 55.86 | 70.16 | 58.38 | 727.26 | — | — |
| P/OCF | 17.54 | 21.86 | 53.49 | 68.70 | 52.32 | 442.86 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.26 | 19.44 | 18.51 | 6.03 | 14.11 | — | — |
| EV / EBITDA | 37.65 | 48.42 | 195.41 | — | — | — | — | — |
| EV / EBIT | 41.48 | 41.31 | 142.15 | 553.01 | — | — | — | — |
| EV / FCF | — | 20.38 | 53.19 | 65.36 | 46.32 | 633.88 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 71.7% | 71.7% | 72.0% | 72.3% | 72.0% | 72.1% | 71.2% | 69.8% |
| Operating Margin | 13.6% | 13.6% | 8.5% | -2.4% | -17.5% | -22.4% | -9.7% | -18.2% |
| Net Profit Margin | 39.9% | 39.9% | 11.8% | 3.0% | -16.1% | -24.0% | -9.8% | -19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 38.1% | 38.1% | 12.0% | 2.7% | -11.3% | -19.6% | -20.3% | -25.2% |
| ROA | 25.1% | 25.1% | 7.9% | 1.9% | -8.5% | -14.4% | -11.7% | -14.3% |
| ROIC | 42.3% | 42.3% | 329.7% | — | — | — | — | — |
| ROCE | 12.2% | 12.2% | 8.2% | -2.1% | -11.7% | -17.2% | -18.2% | -20.5% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.07 | 0.04 | 0.05 | 0.06 | 0.09 | 0.19 |
| Debt / EBITDA | 0.60 | 0.60 | 0.77 | — | — | — | — | — |
| Net Debt / Equity | — | -0.70 | -0.88 | -1.10 | -1.07 | -1.02 | -1.09 | -0.92 |
| Net Debt / EBITDA | -6.06 | -6.06 | -9.79 | — | — | — | — | — |
| Debt / FCF | — | -2.55 | -2.66 | -4.80 | -12.06 | -93.39 | -7.76 | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.0B) exceeds total debt ($94M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.61 | 2.61 | 2.61 | 3.24 | 3.84 | 5.20 | 2.41 | 2.46 |
| Quick Ratio | 2.61 | 2.61 | 2.61 | 3.24 | 3.84 | 5.20 | 2.41 | 2.46 |
| Cash Ratio | 2.07 | 2.07 | 2.08 | 2.70 | 3.35 | 4.65 | 1.83 | 1.86 |
| Asset Turnover | — | 0.52 | 0.57 | 0.56 | 0.49 | 0.38 | 0.92 | 0.74 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 62.23 | 62.92 | 98.21 | 80.77 | 83.52 | 76.83 | 87.37 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 4.9% | 0.6% | 0.2% | — | — | — | — |
| FCF Yield | 5.4% | 4.4% | 1.8% | 1.4% | 1.7% | 0.1% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | — | — |
| Shares Outstanding | — | $48M | $47M | $47M | $39M | $38M | $36M | $36M |
Includes 30+ ratios · 7 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DUOL stock.
Duolingo, Inc.'s current P/E ratio is 17.0x. The historical average is 96.5x.
Duolingo, Inc.'s current EV/EBITDA is 37.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 48.4x.
Duolingo, Inc.'s return on equity (ROE) is 38.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -3.4%.
Based on historical data, Duolingo, Inc. is trading at a P/E of 17.0x. Compare with industry peers and growth rates for a complete picture.
Duolingo, Inc. has 71.7% gross margin and 13.6% operating margin. Operating margin between 10-20% is typical for established companies.
Duolingo, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
AI competition and SBC dilution
Metrics are mathematically derived from official filings.
Margin Expansion Tempered by Platform Fees
Operating margin expanded from 6.7% in 2024Q4 to 15.4% in 2026Q1, per SEC filings, but gross margin remains capped near 72% due to app store fees, limiting upside.
The stable gross margin around 72% reflects the structural take-rate imposed by Apple and Google, which appears to be a permanent ceiling unless distribution shifts to web. Operating leverage is evident as revenue scales, but the 2026Q2 pullback to 11.4% suggests marketing or R&D reinvestment. Net margin volatility, including a 107.5% spike in 2025Q3 from a tax benefit, obscures true earning power; investors should focus on operating margin as the cleanest recurring profitability metric.
ROIC Volatility Masks Underlying Efficiency
ROIC swung from 41.7% in 2024Q3 to 7.7% in 2026Q2, per company filings, reflecting timing of capital base and earnings, but the asset-light model suggests high structural returns.
The extreme quarterly swings in ROIC, from 41.7% to 7.7%, are driven by fluctuations in invested capital and one-time tax benefits, making the metric unreliable on a quarterly basis. Over time, the company's minimal capex and negative working capital cycle imply that returns on tangible capital are likely high, but the inclusion of cash and deferred revenue distorts the ratio. Investors should normalize ROIC by excluding excess cash and using operating income after tax to assess true economic returns.
Working Capital Leverage Drives Cash Conversion
DSO improved from 81 days in 2024Q4 to 40 days in 2026Q2, per financial statements, while DPO rose to 13 days, indicating enhanced collection efficiency and supplier leverage.
The sharp reduction in DSO from 81 to 40 days suggests improved billing and collection processes, likely aided by subscription prepayments. DPO remains low at 13 days, reflecting a service model with limited supplier payables, but the negative working capital cycle (evidenced by deferred revenue growth) is a key driver of the robust cash conversion. The cash conversion cycle is not fully calculable due to missing DIO, but the asset-light nature and prepaid subscriptions suggest a structurally favorable working capital position.
Minimal Debt Masks Off-Balance-Sheet Commitments
D/E stands at 0.06 with D/EBITDA of 2.26 as of 2026Q2, per reported figures, indicating a fortress balance sheet, but SBC dilution acts as a hidden equity claim.
The company's nominal debt is negligible, and interest coverage is not reported, but the low leverage suggests ample capacity for future capital allocation. However, the consistent SBC expense, averaging $36M per quarter, effectively dilutes shareholders and represents a recurring cost not captured in traditional leverage ratios. Investors should monitor the net share count growth and consider SBC-adjusted leverage metrics to assess true financial risk.
Fortress Liquidity with Prepaid Demand Buffer
Current ratio of 2.72 and $1.2B cash as of 2026Q2, per balance sheet data, provide a substantial cushion, while deferred revenue of $505M signals prepaid demand.
The current ratio, which equals the quick ratio due to minimal inventory, indicates strong short-term solvency, and the large cash pile generates interest income in a rising rate environment. Deferred revenue growth from $279M to $505M over ten quarters provides forward visibility and reduces reliance on new sales for near-term cash flow. Under severe stress, the subscription model's recurring nature and low churn would likely sustain liquidity, though a slowdown in new user growth could pressure cash conversion.
Misapplied P/E Distorts True Valuation
The trailing P/E of 15.8 is misleading due to one-time tax benefits, per income statement data, while forward P/E of 48.0 better reflects recurring earnings power.
The trailing P/E is artificially depressed by the 107.5% net margin in 2025Q3, which included a non-cash tax benefit, making it an unreliable gauge of value. The forward P/E of 47.96, based on analyst estimates, is more indicative of the market's expectation for normalized earnings, but it still embeds SBC and ignores the cash-generative nature of the model. A more appropriate metric is EV/EBITDA, which at 34.49 (or 8.24 forward) better captures the company's operating performance and cash flow potential, though it still requires adjustment for SBC to reflect true economic earnings.