Duolingo Financials
| DUOL Stock | USD 195.56 15.48 7.34% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.74 | 3.2369 |
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The financial analysis of Duolingo is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Duolingo includes many different criteria found on its balance sheet. For example, investors should never minimize Duolingo's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Duolingo's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Duolingo.
Net Income |
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With this module, you can analyze Duolingo financials for your investing period. You should be able to track the changes in Duolingo individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
Duolingo | Select Account or Indicator |
Understanding current and past Duolingo Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Duolingo's financial statements are interrelated, with each one affecting the others. For example, an increase in Duolingo's assets may result in an increase in income on the income statement.
The data published in Duolingo's official financial statements usually reflect Duolingo's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Duolingo. For example, before you start analyzing numbers published by Duolingo accountants, it's critical to develop an understanding of what Duolingo's liquidity, profitability, and earnings quality are in the context of the Diversified Consumer Services space in which it operates.
Please note, the presentation of Duolingo's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Duolingo's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Duolingo's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Duolingo. Please utilize our Beneish M Score to check the likelihood of Duolingo's management manipulating its earnings.
Duolingo Stock Summary
Duolingo competes with Bill, Datadog, AsanaInc, Gitlab, and Atlassian Corp. Duolingo, Inc. develops a language-learning website and mobile app in the United States and China. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania. Duolingo Inc operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 500 people.Specialization | Consumer Discretionary, Software - Application |
| Instrument | USA Stock View All |
| Exchange | NASDAQ Exchange |
| ISIN | US26603R1068 |
| CUSIP | 26603R106 |
| Location | Pennsylvania; U.S.A |
| Business Address | 5900 Penn Avenue, |
| Sector | Diversified Consumer Services |
| Industry | Consumer Discretionary |
| Benchmark | NYSE Composite |
| Website | www.duolingo.com |
| Phone | 412 567 6602 |
| Currency | USD - US Dollar |
You should never invest in Duolingo without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Duolingo Stock, because this is throwing your money away. Analyzing the key information contained in Duolingo's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.
Duolingo Key Financial Ratios
Generally speaking, Duolingo's financial ratios allow both analysts and investors to convert raw data from Duolingo's financial statements into concise, actionable information that can be used to evaluate the performance of Duolingo over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Duolingo reports annually and quarterly.| Return On Equity | 0.0268 | ||||
| Profit Margin | 0.03 % | ||||
| Operating Margin | 0.03 % |
Duolingo Financial Ratios Relationships
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. You can analyze the relationship between different fundamental ratios across Duolingo competition to find correlations between indicators driving Duolingo's intrinsic value. More Info.Duolingo is one of the top stocks in return on equity category among related companies. It is one of the top stocks in return on asset category among related companies . At this time, Duolingo's Return On Equity is quite stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Duolingo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Duolingo's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Duolingo's earnings, one of the primary drivers of an investment's value.Duolingo Systematic Risk
Duolingo's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Duolingo volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The function did not generate any output. Please change time horizon or modify your input parameters. The output start index for this execution was one with a total number of output elements of sixty. The Beta measures systematic risk based on how returns on Duolingo correlated with the market. If Beta is less than 0 Duolingo generally moves in the opposite direction as compared to the market. If Duolingo Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Duolingo is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Duolingo is generally in the same direction as the market. If Beta > 1 Duolingo moves generally in the same direction as, but more than the movement of the benchmark.
About Duolingo Financials
What exactly are Duolingo Financials? Typically, a company's financial statements are the reports that show the financial position of the company. 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. Potential Duolingo investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Duolingo investors may use each financial statement separately, they are all related. The changes in Duolingo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Duolingo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.Steps to analyze Duolingo Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Duolingo is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Duolingo has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if Duolingo's financials are consistent with your investment objective using the following steps:- Review Duolingo's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
- Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
- Study the cash flow inflows and outflows to understand Duolingo's liquidity and solvency.
- Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
- Compare Duolingo's financials to those of its peers to see how it stacks up and identify any potential red flags.
- Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Duolingo's stock is overvalued or undervalued.
Today, most investors in Duolingo Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Duolingo's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Duolingo growth as a starting point in their analysis.
Price Earnings To Growth Ratio |
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Duolingo April 16, 2024 Opportunity Range
Along with financial statement analysis, the daily predictive indicators of Duolingo help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Duolingo. We use our internally-developed statistical techniques to arrive at the intrinsic value of Duolingo based on widely used predictive technical indicators. In general, we focus on analyzing Duolingo Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Duolingo's daily price indicators and compare them against related drivers.
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 28.37 | |||
| Value At Risk | (4.96) | |||
| Potential Upside | 4.27 |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Duolingo. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Duolingo Stock please use our How to buy in Duolingo Stock guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Duolingo Stock analysis
When running Duolingo's price analysis, check to measure Duolingo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Duolingo is operating at the current time. Most of Duolingo's value examination focuses on studying past and present price action to predict the probability of Duolingo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Duolingo's price. Additionally, you may evaluate how the addition of Duolingo to your portfolios can decrease your overall portfolio volatility.
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Is Duolingo's industry 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. If investors know Duolingo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Duolingo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.35 | Revenue Per Share 12.813 | Quarterly Revenue Growth 0.454 | Return On Assets (0.01) | Return On Equity 0.0268 |
The market value of Duolingo is measured differently than its book value, which is the value of Duolingo that is recorded on the company's balance sheet. Investors also form their own opinion of Duolingo's value that differs from its market value or its book value, called intrinsic value, which is Duolingo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Duolingo's market value can be influenced by many factors that don't directly affect Duolingo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Duolingo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Duolingo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Duolingo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.