Duolingo (DUOL) fundamentals: P/E, valuation, undervalued?

Duolingo · Consumer Discretionary · ref. ETF XLY · price $142.86
Logo DuolingoSee the full Duolingo (DUOL) profile
In short — Duolingo trades at 16.6× earnings (P/E), 18.7× forward, with a net margin of 35.9 % and revenue growth of +18 %. Read: Fairly valued (P/E 19 in line with ~18% growth (PEG 1.0)).

Is Duolingo stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.

📈 1-year price
$142.86-55.7% over range
Aug 28, 25low $90.03 · high $347.27Aug 27, 26
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21% recommend buying · 14 analysts
Valuation : Fairly valued — P/E 19 in line with ~18% growth (PEG 1.0)

Valuation

16.6
P/E (price/earnings)
18.7
Forward P/E
PEG
4.7
Price/book (P/B)
$6.7B
Market cap
8.59
EPS

Profitability & growth

35.9 %
Net margin
+18 %
Revenue growth
-28 %
Earnings growth
$86M
Total debt

Duolingo income statement

Fiscal yearRevenueNet incomeMargin
2022$369M$-60M-16.1 %
2023$531M$16M3.0 %
2024$748M$89M11.8 %
2025$1.0B$414M39.9 %
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.

Frequently asked questions

What is Duolingo's P/E and is the stock undervalued? What's a good P/E?

Duolingo's P/E is 16.6 (forward 18.7). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Fairly valued".

Is Duolingo profitable?

Duolingo has a net margin of 35.9 % (EPS 8.59). The company is profitable.

Is DUOL stock expensive?

Our read: "Fairly valued" — P/E 19 in line with ~18% growth (PEG 1.0). Cross-check with growth and sector.

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