Duolingo, Inc. (DUOL) is a publicly traded company in the Technology — Software - Application industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Duolingo, Inc. builds and operates an online platform and a mobile application dedicated to language learning, catering to audiences in both the United States and China. The company's comprehensive curriculum spans 40 diverse languages, featuring prominent options such as Spanish, English, French, Japanese, German, Italian, Chinese, and Portuguese, among others. Furthermore, it offers a digital examination for assessing language proficiency.
Is Duolingo, Inc. stock overvalued or undervalued in 2026?
Duolingo, Inc. (DUOL) trades at 16.2× earnings (P/E), against a median of 31.5× across the 317 technology companies above $2bn in Kaplio's universe. Note: earnings per share over the last twelve months ($8.34) are far from the consensus for 2027 ($3.38); that is why this range uses expected earnings. No valuation verdict: its twelve-month earnings are above what analysts expect, so today's P/E looks lower than it will be.
Kaplio overview: Duolingo, Inc.
Market cap $6B · 52 weeks $90 – $265 (49 % below the high) · P/E 16.2× · 2027 est. P/E 40.0× · Dividend none · Next earnings November 3, 2026 · expected EPS $0.57 · Closing price, Nov 2 · accounts published Aug 5.
- Valuation: 2027 est. P/E 40.0× (no verdict).
- Business: ROIC 11 % (fair).
- Balance sheet: Net cash/EBITDA 5.3× (solid).
- Earnings: 7 of 8 (uneven).
What would it be worth at its usual multiples?
No valuation verdict: its twelve-month earnings are above what analysts expect, so today's P/E looks lower than it will be.
Note: earnings per share over the last twelve months ($8.34) are far from the consensus for 2027 ($3.38); that is why this range uses expected earnings.
What matters in technology: 6 of 8 pass
- ROIC 10.8 %, fails.
- SBC / Revenue 13.2 %, fails.
- 3y revenue growth 34.3 %, passes.
- Rule of 40 (SaaS only) 70, passes.
- Gross margin 71.7 %, passes, near the threshold.
- FCF / Revenue 35.6 %, passes.
- Net debt / EBITDA −5.3×, passes.
- EV/EBITDA vs own 5y 24.4×, passes.
Against its peers (reference peers) — Duolingo, Inc.: P/E 16.2×; EV/EBITDA 24.4×; ROIC 10.8 %; $6.3B. Pearson plc (P/E 25.5×; EV/EBITDA 8.4×; ROIC 7.2 %; $10.4B), Lyft, Inc. (P/E 2.4×; EV/EBITDA 39.2×; ROIC —; $6.3B), Open Text Corporation (P/E 5.9×; EV/EBITDA 3.7×; ROIC 14.0 %; $6.4B).
Profitability
| Return on Equity | 30.11% |
| Return on Invested Capital | 10.85% |
| Return on Assets | 19.81% |
| Gross Margin | 72.34% |
| Operating Margin | 14.18% |
| Net Margin | 35.87% |
Financial Health
| Debt / Equity | 0.06 |
| Current Ratio | 2.72 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 8.96 |
Price Performance
| 1 month | -6.24% |
| 3 months | -0.04% |
| Year-to-date | -22.92% |
| 1 year | -48.94% |
| 3 years | -15.10% |
| 5 years | -14.70% |
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Explore sector: Technology · Software - Application
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