Latest Ratios: P/E Ratio 98.6x · EV/EBITDA 47.3x · ROE N/A. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.2B | $874M | $478M | $607M | $1.5B | $3.0B | $1.3B | — | — |
| Enterprise Value | $1.7B | $2.6B | $2.1B | $1.6B | $1.3B | $2.4B | $3.4B | $2.1B | — | — |
| P/E Ratio → | 98.64 | 11.20 | 10.57 | — | — | — | — | — | — | — |
| P/S Ratio | 1.77 | 0.20 | 0.16 | 0.09 | 0.12 | 0.38 | 1.19 | 1.11 | — | — |
| P/B Ratio | — | — | — | — | — | — | — | 4.46 | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.44 | 0.38 | 0.30 | 0.26 | 0.61 | 1.33 | 1.71 | — | — |
| EV / EBITDA | 47.33 | 10.41 | 11.26 | — | — | — | — | — | — | — |
| EV / EBIT | 52.19 | 14.80 | 13.84 | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.3% | 44.3% | 48.9% | 51.4% | 51.6% | 49.5% | 43.8% | 27.7% | 29.6% | 35.5% |
| Operating Margin | 3.9% | 3.9% | 2.9% | -8.0% | -13.7% | -21.2% | -33.7% | -38.1% | -30.0% | -28.5% |
| Net Profit Margin | 1.8% | 1.8% | 1.5% | -10.2% | -14.5% | -24.8% | -69.4% | -49.8% | -28.6% | -29.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | -199.8% | — | — |
| ROA | 5.7% | 5.7% | 4.7% | -27.9% | -29.6% | -42.3% | -84.3% | -44.5% | -53.5% | -82.5% |
| ROIC | — | — | — | — | — | -319.2% | — | -95.6% | — | — |
| ROCE | — | — | — | — | — | — | — | -140.3% | — | — |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | 2.99 | — | — |
| Debt / EBITDA | 7.35 | 7.35 | 9.77 | — | — | — | — | — | — | — |
| Net Debt / Equity | — | — | — | — | — | — | — | 2.41 | — | — |
| Net Debt / EBITDA | 5.60 | 5.60 | 6.65 | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.88 | 2.88 | 2.08 | -6.76 | -14.66 | -28.42 | -25.92 | -14.19 | -4.37 | -4.52 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.59 | 0.59 | 0.50 | 0.42 | 0.59 | 0.75 | 0.55 | 1.15 | 0.46 | 0.13 |
| Quick Ratio | 0.54 | 0.54 | 0.45 | 0.35 | 0.52 | 0.66 | 0.51 | 1.11 | 0.44 | 0.13 |
| Cash Ratio | 0.25 | 0.25 | 0.22 | 0.17 | 0.32 | 0.27 | 0.35 | 0.92 | 0.33 | 0.04 |
| Asset Turnover | — | 2.99 | 3.10 | 3.23 | 2.20 | 1.52 | 1.22 | 0.58 | 1.18 | 2.82 |
| Inventory Turnover | 23.39 | 23.39 | 16.47 | 12.08 | 10.45 | 7.94 | 11.93 | 11.91 | 21.62 | 190.54 |
| Days Sales Outstanding | — | 43.40 | 32.66 | 25.75 | 30.07 | 23.13 | 44.52 | 65.18 | 45.80 | 59.53 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 8.9% | 9.5% | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 7.1% | 26.7% | 8.3% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 7.1% | 26.7% | 8.3% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $120M | $118M | $121M | $113M | $122M | $113M | $95M | $99M | $99M |
Regulatory and consumption sensitivity
Based on reported figures, Youdao trades at a forward P/E of 7.64, which appears to reflect a significant conglomerate discount compared to broader sector peers, potentially underestimating the long-term value of its integrated AI-driven hardware ecosystem and its unique positioning within the NetEase parent structure.
The stark contrast between the trailing P/E of 83.89 and the forward multiple suggests that the market is pricing in a rapid, albeit uncertain, recovery in earnings power. Investors should monitor whether this valuation gap is a structural mispricing of its AI-driven pivot or a rational response to the persistent regulatory and margin risks inherent in the Chinese education sector.
As reported in financial statements, Youdao's gross margin has compressed from 55.9% in 2023Q3 to 45.1% in 2025Q4, a trend that appears to be driven by the increasing revenue contribution of lower-margin smart devices relative to the company's higher-margin digital learning services.
The thin operating margin of 3.86% indicates that the company struggles to achieve meaningful economies of scale, as high R&D and marketing expenditures continue to absorb the majority of gross profits. This suggests that the firm's current profitability is highly sensitive to fluctuations in hardware component costs and the intensity of competitive pricing in the consumer electronics space.
According to recent SEC filings, Youdao's cash conversion cycle has remained relatively stable, fluctuating between 23 and 43 days over the last ten quarters, which suggests that management maintains disciplined control over inventory and receivables despite the complexities of managing a hybrid hardware-software business model.
The consistent DSO and DIO metrics imply that the company is effectively managing its supply chain and customer collections, preventing the buildup of obsolete inventory or uncollectible receivables. However, investors should monitor whether this efficiency can be maintained as the company scales its hardware portfolio, which typically carries higher working capital requirements than pure digital services.
Based on the provided data, Youdao's current ratio has consistently remained below 0.60 over the last ten quarters, signaling a vulnerable liquidity position that may limit the company's ability to navigate unexpected market shocks or significant supply chain disruptions without external support.
The persistent reliance on short-term assets to cover liabilities suggests that the firm operates with minimal margin for error, leaving it exposed to potential liquidity crunches. This structural tightness warrants further investigation into the company's access to credit facilities, particularly given the absence of a robust cash-generating engine to bolster its balance sheet.
The market's reliance on traditional P/E ratios to evaluate Youdao is fundamentally flawed, as it obscures the company's transition from a legacy tutoring firm to an AI-driven hardware provider, where R&D investment is currently prioritized over immediate bottom-line earnings generation.
Analysts should instead focus on metrics like EV/Sales or user-based engagement metrics, which better capture the value of the company's growing hardware ecosystem and its potential for future monetization. Using P/E in this context risks penalizing the company for necessary strategic investments that are essential for its long-term competitive survival.
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Quick answers to the most common questions about buying DAO stock.
Youdao, Inc.'s current P/E ratio is 98.6x. The historical average is 10.9x. This places it at the 100th percentile of its historical range.
Youdao, Inc.'s current EV/EBITDA is 47.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
Based on historical data, Youdao, Inc. is trading at a P/E of 98.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Youdao, Inc. has 44.3% gross margin and 3.9% operating margin.
Youdao, Inc.'s Debt/EBITDA ratio is 7.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.