Youdao Inc (DAO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Youdao Inc stock (DAO) is currently trading at $10.31. Youdao Inc PE ratio is 60.29. Youdao Inc PS ratio (Price-to-Sales) is 0.21. Analyst consensus price target for DAO is $11.99. WallStSmart rates DAO as Sell.
- DAO PE ratio analysis and historical PE chart
- DAO PS ratio (Price-to-Sales) history and trend
- DAO intrinsic value — DCF, Graham Number, EPV models
- DAO stock price prediction 2025 2026 2027 2028 2029 2030
- DAO fair value vs current price
- DAO insider transactions and insider buying
- Is DAO undervalued or overvalued?
- Youdao Inc financial analysis — revenue, earnings, cash flow
- DAO Piotroski F-Score and Altman Z-Score
- DAO analyst price target and Smart Rating
Youdao Inc
📊 No data available
Try selecting a different time range
DAO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Youdao Inc (DAO)
DAO trades 717% above its Graham fair value of $1.16, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Youdao Inc (DAO) · 8 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales. Concerns around operating margin and price/book. Significant fundamental concerns warrant caution or avoidance.
Youdao Inc (DAO) Key Strengths (1)
Paying less than $1 for every $1 of annual revenue
Supporting Valuation Data
Youdao Inc (DAO) Areas to Watch (7)
Earnings declining -43.40%, profits shrinking
Near-zero operating margins, business under pressure
Very expensive at 60.1x book value
Very thin margins, barely profitable
Small-cap company with higher risk but more growth potential
Solid revenue growth at 16.80% per year
Moderate institutional interest at 30.62%
Supporting Valuation Data
Youdao Inc (DAO) Detailed Analysis Report
Overall Assessment
This company scores 32/100 in our Smart Analysis, earning a F grade. Out of 8 metrics analyzed, 1 register as strengths (avg 10.0/10) while 7 fall into concern territory (avg 3.1/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales. Valuation metrics including Price/Sales (0.21) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Price/Book. Some valuation metrics including Price/Book (60.14) suggest expensive pricing. Growth concerns include Revenue Growth at 16.80%, EPS Growth at -43.40%, which may limit upside. Profitability pressure is visible in Operating Margin at 3.85%, Profit Margin at 1.82%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Operating Margin at 3.85% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 16.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
DAO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
DAO's Price-to-Sales ratio of 0.21x trades at a 22% premium to its historical average of 0.17x (71th percentile). The current valuation is 80% below its historical high of 1.01x set in Jul 2020, and 935% above its historical low of 0.02x in Aug 2024. Over the past 12 months, the PS ratio has expanded from ~0.0x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Youdao Inc (DAO) · CONSUMER DEFENSIVE › EDUCATION & TRAINING SERVICES
The Big Picture
Youdao Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 5.9B with 17% growth year-over-year. Profit margins are strong at 182.0%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 182.0% and operating margin of 385.0% demonstrate strong pricing power and operational efficiency.
Earnings fell 43% YoY while revenue grew 17%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Valuation compression risk at a P/E of 60.3x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor EDUCATION & TRAINING SERVICES industry trends, competitive moves, and regulatory changes that could impact Youdao Inc.
Bottom Line
Youdao Inc offers an attractive blend of growth (17% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 8:25:27 AM
About Youdao Inc(DAO)
NYSE
CONSUMER DEFENSIVE
EDUCATION & TRAINING SERVICES
China
Youdao, Inc., an Internet technology company, provides online content, community, communication and commerce services in China. The company is headquartered in Hangzhou, China.