Duolingo Current Valuation vs. Net Income
| DUOL Stock | USD 114.55 2.35 2.01% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.58 | 0.65 |
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For Duolingo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Duolingo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Duolingo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Duolingo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Duolingo over time as well as its relative position and ranking within its peers.
Duolingo's Revenue Breakdown by Earning Segment
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Duolingo Revenue Breakdown by Earning Segment
By analyzing Duolingo's earnings estimates, investors can diagnose different trends across Duolingo's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Duolingo. Projected growth potential of Duolingo fundamentally drives upward valuation adjustments. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Duolingo assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 11.143 | Earnings Share 7.94 | Revenue Per Share | Quarterly Revenue Growth 0.411 | Return On Assets |
Investors evaluate Duolingo using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Duolingo's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause Duolingo's market price to deviate significantly from intrinsic value.
It's important to distinguish between Duolingo's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Duolingo should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Duolingo's market price signifies the transaction level at which participants voluntarily complete trades.
Duolingo Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Duolingo's current stock value. Our valuation model uses many indicators to compare Duolingo value to that of its competitors to determine the firm's financial worth. Duolingo is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in net income category among its peers making up about 0.02 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Duolingo is roughly 57.25 . At this time, Duolingo's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Duolingo by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Duolingo Current Valuation vs. Competition
Duolingo is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is currently estimated at about 98.46 Billion. Duolingo holds roughly 5.07 Billion in current valuation claiming about 5% of stocks in Consumer Discretionary industry.
Duolingo Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Duolingo |
| = | 5.07 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Duolingo |
| = | 88.57 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Duolingo Net Income Comparison
Duolingo is currently under evaluation in net income category among its peers.
Duolingo Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Duolingo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Duolingo will eventually generate negative long term returns. The profitability progress is the general direction of Duolingo's change in net profit over the period of time. It can combine multiple indicators of Duolingo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 72 M | 75.6 M | |
| Net Income From Continuing Ops | 101.9 M | 107 M | |
| Income Before Tax | 117.7 M | 123.5 M | |
| Total Other Income Expense Net | 45.7 M | 48 M | |
| Net Loss | -53.6 M | -56.3 M | |
| Net Income | 101.9 M | 107 M | |
| Income Tax Expense | 15.8 M | 16.6 M | |
| Net Interest Income | 49.1 M | 51.6 M | |
| Interest Income | 49.1 M | 51.6 M | |
| Non Operating Income Net Other | 7.5 M | 7.9 M | |
| Change To Netincome | 84.9 M | 89.1 M | |
| Net Income Per Share | 1.83 | 1.92 | |
| Income Quality | 2.90 | 3.05 | |
| Net Income Per E B T | 1.00 | 1.06 |
Duolingo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Duolingo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Duolingo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Duolingo's important profitability drivers and their relationship over time.
Duolingo Earnings Estimation Breakdown
The calculation of Duolingo's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Duolingo is estimated to be 1.9778 with the future projection ranging from a low of 1.925 to a high of 2.025. Please be aware that this consensus of annual earnings estimates for Duolingo is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.93 Lowest | Expected EPS | 2.02 Highest |
Duolingo Earnings Projection Consensus
Suppose the current estimates of Duolingo's value are higher than the current market price of the Duolingo stock. In this case, investors may conclude that Duolingo is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Duolingo's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2026 | Current EPS (TTM) | |
| 23 | 54.53% | 0.0 | 1.9778 | 7.94 |
Duolingo Earnings History
Earnings estimate consensus by Duolingo analysts from Wall Street is used by the market to judge Duolingo's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we suggest analyzing not only Duolingo's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.Duolingo Quarterly Gross Profit |
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Duolingo Earnings per Share Projection vs Actual
Actual Earning per Share of Duolingo refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Duolingo predict the company's earnings will be in the future. The higher the earnings per share of Duolingo, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.Duolingo Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as Duolingo, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Duolingo should always be considered in relation to other companies to make a more educated investment decision.Duolingo Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact Duolingo's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
null | null | null | null | null | 0 | ||
2025-11-05 | 2025-09-30 | 0.759 | 5.95 | 5.191 | 683 | ||
2025-08-07 | 2025-06-30 | 0.58 | 0.91 | 0.33 | 56 | ||
2025-05-01 | 2025-03-31 | 0.27 | 1.2618 | 0.9918 | 367 | ||
2025-02-27 | 2024-12-31 | 0.4794 | 0.509 | 0.0296 | 6 | ||
2024-11-06 | 2024-09-30 | 0.35 | 0.49 | 0.14 | 40 | ||
2024-08-07 | 2024-06-30 | 0.32 | 0.51 | 0.19 | 59 | ||
2024-05-08 | 2024-03-31 | 0.27 | 0.57 | 0.3 | 111 | ||
2024-02-28 | 2023-12-31 | 0.17 | 0.26 | 0.09 | 52 | ||
2023-11-08 | 2023-09-30 | -0.11 | 0.06 | 0.17 | 154 | ||
2023-08-08 | 2023-06-30 | -0.19 | 0.08 | 0.27 | 142 | ||
2023-05-09 | 2023-03-31 | -0.23 | -0.06 | 0.17 | 73 | ||
2023-02-28 | 2022-12-31 | -0.53 | -0.35 | 0.18 | 33 | ||
2022-11-10 | 2022-09-30 | -0.55 | -0.46 | 0.09 | 16 | ||
2022-08-04 | 2022-06-30 | -0.52 | -0.38 | 0.14 | 26 | ||
2022-05-12 | 2022-03-31 | -0.57 | -0.31 | 0.26 | 45 | ||
2022-03-03 | 2021-12-31 | -0.68 | -0.46 | 0.22 | 32 | ||
2021-11-10 | 2021-09-30 | -0.96 | -0.98 | -0.02 | 2 | ||
2021-08-11 | 2021-06-30 | -0.01 | -0.29 | -0.28 | 2800 | ||
2021-06-02 | 2021-03-31 | 0 | -1.04 | -1.04 | 0 | ||
2021-03-31 | 2020-12-31 | 0 | -1.043 | -1.043 | 0 | ||
2020-03-31 | 2019-12-31 | 0 | -0.18 | -0.18 | 0 |
Use Duolingo in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Duolingo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Duolingo will appreciate offsetting losses from the drop in the long position's value.Duolingo Pair Trading
Duolingo Pair Trading Analysis
The ability to find closely correlated positions to Duolingo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Duolingo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Duolingo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Duolingo to buy it.
The correlation of Duolingo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Duolingo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Duolingo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Duolingo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Duolingo position
In addition to having Duolingo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Broad Equity ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Equity ETFs theme has 548 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Broad Equity ETFs Theme or any other thematic opportunities.
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Check out Investing Opportunities. For more information on how to buy Duolingo Stock please use our How to buy in Duolingo Stock guide.You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project Duolingo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Duolingo at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Duolingo's income statement, its balance sheet, and the statement of cash flows.