# Duolingo Inc. (DUOL) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $154.46, market value $7.2 billion.

## Valuation
- **P/E (trailing): 18.3×** (5-yr avg 280.4×, 3-yr avg 280.4×). Duolingo Inc. trades at 18.3× trailing earnings, well below its own five-year average of 280.4×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 20.2×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.06**. A PEG of 0.06 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 6.3×**. Each dollar of revenue is priced at 6.3×.
- **Price / book: 5.1×**. The shares trade at 5.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 5.7%** (5-yr avg 1.9%). Free cash flow equals 5.7% of the market value, above its five-year average of 1.9%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.5%**. The inverse of the P/E: 5.5% of the price is earned each year.

## Profitability
- **Gross margin: 72.7%**. Duolingo Inc. keeps 72.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 13.7%**. 13.7% of revenue is left after running the business.
- **Net margin: 39.9%**. 39.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 30.7%**. 30.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 20.6%**. Each dollar of assets produces 20.6% of profit.

## Growth
- **Revenue growth (1 yr): 38.7%** (3-yr 41.1%/yr, 5-yr 45.0%/yr). Revenue grew 38.7% over the last year, against 45.0% a year compounded over five years.
- **EPS growth (1 yr): 355.9%**. Earnings per share rose 355.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 97.4%/yr**. Free cash flow has compounded at 97.4% a year over three years.

## Financial health
- **Current ratio: 2.61** (quick 2.61). Current assets cover the next year's liabilities 2.61 times.
- **Altman Z-score: 8.92**. A Z-score of 8.92 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Duolingo Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: hold** (18 analysts). 18 analysts cover Duolingo Inc.; the consensus is hold, with an average price target of $127.62 (-17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -43.4%** (YTD -12.0%, 3-mo 41.7%). The shares are down 43.4% over twelve months including dividends.
- **From 52-week high: -56.2%** (75.7% above the low). Trading 56% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.70** (volatility 64%). Beta of 0.70 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DUOL · Page: https://foliofundamentals.com/stocks/duol

Not investment advice.