Duolingo, Inc. (DUOL) Financial Ratios
7 years of historical data (2019–2025) · Technology · Software - Application
EV/EBITDA
↓
26.34
↓-79% vs avg
5yr avg: 124.11
30Y Low50.2·High50.2
P/FCF
↓
13.23
↓-96% vs avg
5yr avg: 317.76
30Y Low22.9·High75.4
P/B Ratio
↓
3.77
↓-65% vs avg
5yr avg: 10.80
30Y Low5.2·High18.5
ROE
↑
38.1%
↓+1294% vs avg
5yr avg: 2.7%
30Y Low-28%·High38%
Debt/EBITDA
↓
0.63
↓-9% vs avg
5yr avg: 0.68
30Y Low0.6·High0.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
DUOL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Duolingo, Inc. trades at 12.3x earnings, 96% below its 5-year average of 280.4x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 27.5x, the stock trades at a discount of 55%. On a free-cash-flow basis, the stock trades at 13.2x P/FCF, 96% below the 5-year average of 317.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.9B | $8.5B | $15.3B | $10.6B | $2.8B | $4.1B | — | — |
| Enterprise Value | $4.0B | $7.5B | $14.5B | $9.8B | $2.2B | $3.5B | — | — |
| P/E Ratio → | 12.25 | 20.48 | 172.46 | 648.14 | — | — | — | — |
| P/S Ratio | 4.72 | 8.17 | 20.42 | 19.87 | 7.60 | 16.19 | — | — |
| P/B Ratio | 3.77 | 6.29 | 18.52 | 16.10 | 5.18 | 7.92 | — | — |
| P/FCF | 13.23 | 22.93 | 55.86 | 75.42 | 64.49 | 1370.12 | — | — |
| P/OCF | 12.62 | 21.86 | 53.49 | 68.70 | 52.32 | 442.86 | — | — |
P/E links to full P/E history page with 30-year chart
DUOL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Duolingo, Inc.'s enterprise value stands at 26.3x EBITDA, 79% below its 5-year average of 124.1x. The Technology sector median is 17.4x, placing the stock at a 52% premium on an enterprise-value basis.
| 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 | 26.34 | 50.25 | 197.97 | — | — | — | — | — |
| EV / EBIT | 29.14 | 55.58 | 232.29 | — | — | — | — | — |
| EV / FCF | — | 20.38 | 53.18 | 70.26 | 51.17 | 1194.19 | — | — |
DUOL Profitability
Margins and return-on-capital ratios measuring operating efficiency
Duolingo, Inc. earns an operating margin of 13.1%. Operating margins have expanded from -2.5% to 13.1% over the past 3 years, signaling improving operational efficiency. Return on equity of 38.1% is exceptionally high. ROIC of 40.8% represents excellent returns on invested capital.
Margins
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 | 72.2% | 72.2% | 72.8% | 73.2% | 73.1% | 72.4% | 71.6% | 70.7% |
| Operating Margin | 13.1% | 13.1% | 8.4% | -2.5% | -17.6% | -23.9% | -9.9% | -20.0% |
| Net Profit Margin | 39.9% | 39.9% | 11.8% | 3.0% | -16.1% | -24.0% | -9.8% | -19.2% |
Return on Capital
| 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% | -27.8% | — | — |
| ROA | 18.8% | 18.8% | 4.2% | 1.0% | -4.4% | -8.3% | -11.7% | -14.3% |
| ROIC | 40.8% | 40.8% | 356.4% | — | — | — | — | — |
| ROCE | 7.9% | 7.9% | 3.5% | -0.9% | -5.4% | -9.4% | -18.5% | -22.4% |
DUOL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Duolingo, Inc. carries a Debt/EBITDA ratio of 0.6x, which is very conservative (78% below the sector average of 2.9x). The company holds a net cash position — cash of $1.0B exceeds total debt of $94M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| 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 | — | — |
| Debt / EBITDA | 0.63 | 0.63 | 0.74 | — | — | — | — | — |
| Net Debt / Equity | — | -0.70 | -0.89 | -1.10 | -1.07 | -1.02 | — | — |
| Net Debt / EBITDA | -6.29 | -6.29 | -9.95 | — | — | — | — | — |
| Debt / FCF | — | -2.55 | -2.67 | -5.16 | -13.32 | -175.93 | -8.12 | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.0B) exceeds total debt ($94M)
DUOL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Duolingo, Inc.'s current ratio of 2.61x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has declined from 3.24x to 2.61x over the past 3 years.
| 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 | 0.31 | 0.29 | 0.26 | 0.20 | 0.92 | 0.74 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 98.34 | 62.91 | 61.15 | 46.16 | 48.27 | 46.16 | 51.61 |
DUOL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Duolingo, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 8.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.2% | 4.9% | 0.6% | 0.2% | — | — | — | — |
| FCF Yield | 7.6% | 4.4% | 1.8% | 1.3% | 1.6% | 0.1% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $48M | $47M | $47M | $39M | $38M | $36M | $36M |
Peer Comparison
Compare DUOL with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 DUOLYou | $5B | 12.3 | 26.3 | 13.2 | 72.2% | 13.1% | 38.1% | 40.8% | 0.6 |
 CHGG | $130M | -1.2 | 11.9 | — | 60.2% | -16.8% | -66.2% | -13.4% | 5.5 |
 COUR | $1B | -19.5 | — | 9.5 | 54.6% | -10.3% | -8.3% | — | — |
 UDMY | $700M | 186.8 | 21.0 | 8.7 | 65.6% | -0.3% | 1.9% | -56.7% | 0.4 |
 LSCC | $17B | 5613.9 | 296.9 | 129.4 | 68.2% | 2.9% | 0.4% | 1.8% | 1.4 |
 PRDO | $2B | 14.1 | 8.9 | 9.9 | 71.7% | 23.2% | 16.6% | 15.3% | 0.4 |
 STRA | $2B | 14.5 | 7.2 | 11.6 | 49.0% | 15.5% | 7.7% | 9.0% | 0.4 |
 LRN | $4B | 15.6 | 7.9 | 10.6 | 39.2% | 15.0% | 21.7% | 22.0% | 1.2 |
 GOTU | $760M | -4.9 | — | 64.9 | 68.0% | -26.0% | -42.2% | -47.8% | — |
 TAL | $773M | 9.1 | -16.3 | 2.7 | 53.3% | -0.3% | 2.3% | -0.3% | 8.2 |
 EDU | $9B | 24.5 | 15.2 | 14.1 | 55.4% | 8.7% | 9.3% | 9.9% | 1.5 |
| Technology Median | — | 27.5 | 17.4 | 19.8 | 48.6% | -0.5% | 2.4% | 2.9% | 2.9 |
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Download Financial Ratios Data
Includes 30+ ratios · 7 years · Updated daily
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Start ComparisonDUOL — Frequently Asked Questions
Quick answers to the most common questions about buying DUOL stock.
What is Duolingo, Inc.'s P/E ratio?
Duolingo, Inc.'s current P/E ratio is 12.3x. The historical average is 96.5x.
What is Duolingo, Inc.'s EV/EBITDA?
Duolingo, Inc.'s current EV/EBITDA is 26.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 50.2x.
What is Duolingo, Inc.'s ROE?
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 2.7%.
Is DUOL stock overvalued?
Based on historical data, Duolingo, Inc. is trading at a P/E of 12.3x. Compare with industry peers and growth rates for a complete picture.
What are Duolingo, Inc.'s profit margins?
Duolingo, Inc. has 72.2% gross margin and 13.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Duolingo, Inc. have?
Duolingo, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.