WallStSmart

Duolingo Inc (DUOL) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target

Duolingo Inc stock (DUOL) is currently trading at $99.12. Duolingo Inc PE ratio is 11.40. Duolingo Inc PS ratio (Price-to-Sales) is 4.42. Analyst consensus price target for DUOL is $105.73. WallStSmart rates DUOL as Moderate Buy.

  • DUOL PE ratio analysis and historical PE chart
  • DUOL PS ratio (Price-to-Sales) history and trend
  • DUOL intrinsic value — DCF, Graham Number, EPV models
  • DUOL stock price prediction 2025 2026 2027 2028 2029 2030
  • DUOL fair value vs current price
  • DUOL insider transactions and insider buying
  • Is DUOL undervalued or overvalued?
  • Duolingo Inc financial analysis — revenue, earnings, cash flow
  • DUOL Piotroski F-Score and Altman Z-Score
  • DUOL analyst price target and Smart Rating
DUOL

Duolingo Inc

NASDAQTECHNOLOGY
$99.12
$1.44 (1.47%)
52W$91.99
$544.93
Target$105.73+6.7%

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IV

DUOL Intrinsic Value Analysis for Value Investors

Benjamin Graham Formula · Duolingo Inc (DUOL)

Margin of Safety
+72.8%
Strong Buy Zone
DUOL Fair Value
$401.08
Graham Formula
Current Price
$99.12
$301.96 below fair value
Undervalued
Fair: $401.08
Overvalued
Price $99.12
Graham IV $401.08
Analyst $105.73

DUOL trades at a significant discount to its Graham intrinsic value of $401.08, offering a 73% margin of safety — a level value investors typically seek before buying.

Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.

WallStSmart

Smart Analysis

Duolingo Inc (DUOL) · 9 metrics scored

Smart Score

69
out of 100
Grade: B-
Strong Buy
Investment Rating

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 return on equity, revenue growth, eps growth. Overall metrics suggest strong investment potential with favorable risk/reward.

Duolingo Inc (DUOL) Key Strengths (6)

Avg Score: 9.5/10
Return on EquityProfitability
38.10%10/10

Every $100 of shareholder equity generates $38 in profit

Revenue GrowthGrowth
35.00%10/10

Revenue surging 35.00% year-over-year

EPS GrowthGrowth
193.60%10/10

Earnings per share surging 193.60% year-over-year

Profit MarginProfitability
39.90%10/10

Keeps $40 of every $100 in revenue as net profit

Institutional Own.Quality
94.54%10/10

94.54% of shares held by major funds and institutions

Market CapQuality
$4.59B7/10

Mid-cap company balancing growth potential with stability

Supporting Valuation Data

P/E Ratio
11.4
Undervalued
Forward P/E
13.02
Attractive
Trailing P/E
11.4
Undervalued

Duolingo Inc (DUOL) Areas to Watch (3)

Avg Score: 4.7/10
Price/SalesValuation
4.424/10

Premium valuation at 4.4x annual revenue

Price/BookValuation
3.404/10

Premium pricing at 3.4x book value

Operating MarginProfitability
15.50%6/10

Decent operational efficiency, solid but not exceptional

Supporting Valuation Data

DUOL Target Price
$105.73
14% Downside

Duolingo Inc (DUOL) Detailed Analysis Report

Overall Assessment

This company scores 69/100 in our Smart Analysis, earning a B- grade. Out of 9 metrics analyzed, 6 register as strengths (avg 9.5/10) while 3 fall into concern territory (avg 4.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.

The Bull Case

The strongest argument centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with Return on Equity at 38.10%, Profit Margin at 39.90%. Growth metrics are encouraging with Revenue Growth at 35.00%, EPS Growth at 193.60%.

The Bear Case

The primary concerns are Price/Sales, Price/Book, Operating Margin. Some valuation metrics including Price/Sales (4.42), Price/Book (3.40) suggest expensive pricing. Profitability pressure is visible in Operating Margin at 15.50%.

Key Dynamics to Monitor

Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 38.10% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 35.00% strong but requiring continuation.

Risk Considerations

Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.

Bottom Line

Mixed fundamentals with both positives (Return on Equity, Revenue Growth) and negatives (Price/Sales, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.

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.

DUOL Price-to-Sales(PS) Ratio Chart

Historical valuation based on market cap ÷ trailing 12-month revenue

DUOL's Price-to-Sales ratio of 4.42x trades at a deep discount to its historical average of 14.99x (0th percentile). The current valuation is 87% below its historical high of 34.45x set in Sep 2021, and 0% above its historical low of 4.42x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~18.9x as trailing revenue scaled faster than the stock price.

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WallStSmart Analysis Synopsis

Data-driven financial summary for Duolingo Inc (DUOL) · TECHNOLOGYSOFTWARE - APPLICATION

The Big Picture

Duolingo Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 1.0B with 35% growth year-over-year. Profit margins are strong at 39.9%, reflecting pricing power and operational efficiency.

Key Findings

Strong Revenue Growth

Revenue growing at 35% YoY, reaching 1.0B. This pace significantly outperforms most SOFTWARE - APPLICATION peers.

Excellent Capital Efficiency

ROE of 38.1% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.

What to Watch Next

Growth sustainability: can Duolingo Inc maintain 35%+ revenue growth, or will competition slow it down?

Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Duolingo Inc.

Bottom Line

Duolingo Inc offers an attractive blend of growth (35% 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(35 last 3 months)

Total Buys
9
Total Sells
26
Mar 3, 2026(1 transaction)
SHELTON, JAMES H
Director
Buy
Shares
+5,000

Data sourced from SEC Form 4 filings

Last updated: 11:32:39 AM

About Duolingo Inc(DUOL)

Exchange

NASDAQ

Sector

TECHNOLOGY

Industry

SOFTWARE - APPLICATION

Country

USA

Duolingo Inc (DUOL) is a leading innovator in the education technology sector, renowned for its engaging language-learning platform that employs a freemium model and gamification to attract over 500 million users worldwide. Founded in 2011, the company has established itself as a significant player in the market through continuous investment in AI-driven personalized learning solutions, aimed at enhancing user acquisition and retention across more than 30 languages. Duolingo's commitment to accessible education and user-centric design positions it favorably in a rapidly evolving landscape, making it an appealing opportunity for institutional investors seeking exposure in the dynamic edtech space.

Visit Duolingo Inc (DUOL) Website
5900 PENN AVENUE, PITTSBURGH, PA, UNITED STATES, 15206