Duolingo DUOL
United StatesTechnology · Software - ApplicationUSD
134.29 USD (−11.5%)
18 analysts
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Duolingo is a language learning platform based on subscription and advertising, monetizing over 500 million users through its freemium app and its high-margin digital business model.
Key points
from its scores- ✓Very solid balance sheet7.9
- ✓High-quality business7.7
- ✕Poor share-price trend0.5
- ✕Little or no dividend1.5
- ✕Weak growth4.2
AI analysis
bottom line, main risk, context and newsThe quality of the business and the clean balance sheet justify not exiting, but the earnings decline and negative momentum suggest waiting for an improvement in fundamentals before adding to the position.
Duolingo shows solid financial health (net cash of -6.86x EBITDA, liquidity of 2.72) and a notable quality moat (ROE of 34.42%, gross margin of 72.72%), but its earnings growth is negative (-27.50%) and momentum is very weak (24th percentile in 52 weeks), which weighs on its short-term appeal despite a relatively contained P/E of 18.02.
The main risk is the slowdown in earnings growth (-27.50%), which could indicate market saturation in language learning or increased competition, eroding the growth premium that supports its valuation.
Context and risks
Duolingo has no material exposure to current macro factors: its subscription software business does not depend on interest rates, commodities, or shipping routes. The rise in long-term rates could slightly pressure its valuation multiple as a growth stock, but its net cash balance sheet and free cash flow generation (167.68% conversion) insulate it from a direct financial impact. There is no recent news altering the company's risk profile.
Is Duolingo stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Technology median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 18.0 | 31.3 | −42% |
| EV / EBITDA | 32.8 | 20.4 | +61% |
| Price / book | 5.0 | 6.3 | −20% |
| Price / sales | 6.2 | 5.3 | +17% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.8 out of 10 (median for Technology: 5.3).
Average analyst target: 134.29 USD, −11.5% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 18.0
- Forward P/E
- 19.9
- EV / EBITDA
- 32.8
- Price / book
- 5.0
- Price / sales
- 6.2
- Market cap
- 7.1B USD
- Enterprise value
- 5.9B USD
Profitability
- ROE
- 34.4%
- ROA
- 5.6%
- ROIC (approx.)
- 8.9%
- Gross margin
- 72.7%
- Operating margin
- 11.7%
- Net margin
- 35.9%
- Free cash flow
- 300.2M USD
- FCF yield
- 4.2%
- Cash conversion
- 168%
Solvency
- Total debt
- 86.1M USD
- Net debt
- −1.2B USD
- Cash
- 1.3B USD
- EBITDA
- 179.0M USD
- Net debt / EBITDA
- −6.86
- Debt / equity
- 6.11
- Current ratio
- 2.72
- Quick ratio
- 2.51
Growth
- Revenue growth
- +18.3%
- Earnings growth
- −27.5%
- EPS (TTM)
- 8.42 USD
- EPS (forward)
- 7.64 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.05
- Analyst consensus
- Hold (18)
- Target price
- 134.29 USD
- 52-week range
- 87.89 – 353.00
Recent news
All DUOL news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Duolingo
Is Duolingo stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Technology median (within 15%). Valuation score: 5.8 out of 10 (median for Technology: 5.3). Average analyst target: 134.29 USD, −11.5% versus the price. This is not investment advice.
What score does Duolingo get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,325 of 2,130 (better than 35% of the companies analysed). Its strongest category is Financial health (7.9) and its weakest, Momentum (0.5). Analysis of 08/10/2026.
What is Duolingo's P/E ratio?
Its P/E is 18.0: the share price equals 18.0 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 19.9.
How much is Duolingo worth on the stock market?
Its market capitalisation is 7.1B USD and its enterprise value, debt included, is 5.9B USD.
How much debt does Duolingo have?
It has more cash than debt: net cash of 1.2B USD.
Does Duolingo pay a dividend?
It pays no dividend, or almost none.
How has Duolingo stock performed over the last year?
It has fallen 53.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 87.89 and 353.00 USD. Past performance does not guarantee future results.
What do analysts think of Duolingo?
18 analysts cover it; their average recommendation is “Hold” and their average target is 134.29 USD (−11.5% versus the price). It is an estimate, not market data.