Latest Ratios: P/E Ratio 15.1x · EV/EBITDA 34.0x · ROE 38.1%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.0B | $8.5B | $15.3B | $10.6B | $2.8B | $4.1B | — | — |
| Enterprise Value | $5.1B | $7.5B | $14.5B | $9.8B | $2.2B | $3.5B | — | — |
| P/E Ratio → | 15.14 | 20.48 | 172.46 | 648.14 | — | — | — | — |
| P/S Ratio | 5.83 | 8.17 | 20.42 | 19.87 | 7.60 | 16.19 | — | — |
| P/B Ratio | 4.65 | 6.29 | 18.52 | 16.10 | 5.18 | 7.92 | — | — |
| P/FCF | 16.35 | 22.93 | 55.86 | 75.42 | 64.49 | 1370.12 | — | — |
| P/OCF | 15.58 | 21.86 | 53.49 | 68.70 | 52.32 | 442.86 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.26 | 19.44 | 18.51 | 6.03 | 14.11 | — | — |
| EV / EBITDA | 34.02 | 50.25 | 197.97 | — | — | — | — | — |
| EV / EBIT | 37.63 | 55.58 | 232.29 | — | — | — | — | — |
| EV / FCF | — | 20.38 | 53.18 | 70.26 | 51.17 | 1194.19 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.2% | 72.2% | 72.8% | 73.2% | 73.1% | 72.4% | 71.6% | 70.7% |
| Operating Margin | 13.1% | 13.1% | 8.4% | -2.5% | -17.6% | -23.9% | -9.9% | -20.0% |
| Net Profit Margin | 39.9% | 39.9% | 11.8% | 3.0% | -16.1% | -24.0% | -9.8% | -19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 38.1% | 38.1% | 12.0% | 2.7% | -11.3% | -27.8% | — | — |
| ROA | 18.8% | 18.8% | 4.2% | 1.0% | -4.4% | -8.3% | -11.7% | -14.3% |
| ROIC | 40.8% | 40.8% | 356.4% | — | — | — | — | — |
| ROCE | 7.9% | 7.9% | 3.5% | -0.9% | -5.4% | -9.4% | -18.5% | -22.4% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.07 | 0.04 | 0.05 | 0.06 | — | — |
| Debt / EBITDA | 0.63 | 0.63 | 0.74 | — | — | — | — | — |
| Net Debt / Equity | — | -0.70 | -0.89 | -1.10 | -1.07 | -1.02 | — | — |
| Net Debt / EBITDA | -6.29 | -6.29 | -9.95 | — | — | — | — | — |
| Debt / FCF | — | -2.55 | -2.67 | -5.16 | -13.32 | -175.93 | -8.12 | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.0B) exceeds total debt ($94M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.61 | 2.61 | 2.61 | 3.24 | 3.84 | 5.20 | 2.41 | 2.46 |
| Quick Ratio | 2.61 | 2.61 | 2.61 | 3.24 | 3.84 | 5.20 | 2.41 | 2.46 |
| Cash Ratio | 2.07 | 2.07 | 2.08 | 2.70 | 3.35 | 4.65 | 1.83 | 1.86 |
| Asset Turnover | — | 0.52 | 0.31 | 0.29 | 0.26 | 0.20 | 0.92 | 0.74 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 98.34 | 62.91 | 61.15 | 46.16 | 48.27 | 46.16 | 51.61 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 4.9% | 0.6% | 0.2% | — | — | — | — |
| FCF Yield | 6.1% | 4.4% | 1.8% | 1.3% | 1.6% | 0.1% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $48M | $47M | $47M | $39M | $38M | $36M | $36M |
Platform fee dependency
Based on current market data, Duolingo trades at a forward P/E of 42.86, which suggests investors are pricing in significant future growth relative to the broader EdTech sector, where peers like Perdoceo Education trade at much lower multiples of approximately 13.77 times earnings.
The elevated forward multiple indicates that the market views Duolingo as a high-growth engagement platform rather than a traditional education provider. Investors should monitor whether this premium remains sustainable as revenue growth normalizes, as the current valuation leaves little room for error regarding user acquisition and retention targets.
As reported in financial statements, Duolingo's ROIC has shown significant volatility, peaking at 44.9% in 2024Q3 before settling to 8.9% in 2026Q1, a trend that warrants further investigation into the impact of recent R&D investments on the company's long-term ability to compound returns on invested capital.
The fluctuation in returns suggests that the company is currently in a heavy investment phase, likely prioritizing product expansion into new subjects like Math and Music. While the current ROIC remains healthy, the decline from previous peaks may indicate that incremental capital is facing higher hurdles to achieve similar efficiency levels.
According to recent quarterly data, Duolingo maintains a lean operational profile with a DSO of 62 days in 2026Q1, reflecting the company's ability to manage its receivables effectively despite the inherent complexities of global app store payment processing and international user monetization cycles.
The company's ability to maintain low days-sales-outstanding relative to its rapid expansion suggests a highly efficient collection process. This efficiency is critical for a business model that relies on upfront subscription payments, as it ensures that cash is available to fund ongoing product development and marketing efforts.
Investors frequently misapply GAAP net margin to evaluate Duolingo's core profitability, as evidenced by the 107.5% margin in 2025Q3, which obscures the underlying operational performance by including significant non-recurring tax benefits that do not reflect the company's recurring cash-generating capabilities or its true long-term earning power.
Analysts should instead focus on Adjusted EBITDA and Free Cash Flow, which provide a clearer picture of the company's ability to convert revenue into cash after accounting for stock-based compensation. Relying on GAAP figures may lead to an overestimation of profitability and a misunderstanding of the company's cost structure.
Includes 30+ ratios · 7 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DUOL stock.
Duolingo, Inc.'s current P/E ratio is 15.1x. The historical average is 96.5x.
Duolingo, Inc.'s current EV/EBITDA is 34.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 50.2x.
Duolingo, Inc.'s return on equity (ROE) is 38.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 2.7%.
Based on historical data, Duolingo, Inc. is trading at a P/E of 15.1x. Compare with industry peers and growth rates for a complete picture.
Duolingo, Inc. has 72.2% gross margin and 13.1% operating margin. Operating margin between 10-20% is typical for established companies.
Duolingo, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.