Duolingo Stock Performance
| DUOL Stock | USD 364.09 3.14 0.87% |
The firm shows a Beta (market volatility) of 0.24, which means not very significant fluctuations relative to the market. As returns on the market increase, Duolingo's returns are expected to increase less than the market. However, during the bear market, the loss of holding Duolingo is expected to be smaller as well. At this point, Duolingo has a negative expected return of -0.0322%. Please make sure to confirm Duolingo's potential upside, as well as the relationship between the rate of daily change and period momentum indicator , to decide if Duolingo performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Over the last 90 days Duolingo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Duolingo is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors. ...more
| Begin Period Cash Flow | 750.3 M | |
| Total Cashflows From Investing Activities | -217.3 M |
Duolingo Relative Risk vs. Return Landscape
If you would invest 38,434 in Duolingo on April 28, 2025 and sell it today you would lose (2,025) from holding Duolingo or give up 5.27% of portfolio value over 90 days. Duolingo is currently does not generate positive expected returns and assumes 3.4299% risk (volatility on return distribution) over the 90 days horizon. In different words, 30% of stocks are less volatile than Duolingo, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. Expected Return |
| Risk |
Duolingo Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Duolingo's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Duolingo, and traders can use it to determine the average amount a Duolingo's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0094
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | DUOL |
Estimated Market Risk
| 3.43 actual daily | 30 70% of assets are more volatile |
Expected Return
| -0.03 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.01 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Duolingo is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Duolingo by adding Duolingo to a well-diversified portfolio.
Duolingo Fundamentals Growth
Duolingo Stock prices reflect investors' perceptions of the future prospects and financial health of Duolingo, and Duolingo fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Duolingo Stock performance.
| Return On Equity | 0.12 | ||||
| Return On Asset | 0.0359 | ||||
| Profit Margin | 0.12 % | ||||
| Operating Margin | 0.10 % | ||||
| Current Valuation | 15.6 B | ||||
| Shares Outstanding | 39.26 M | ||||
| Price To Book | 18.52 X | ||||
| Price To Sales | 20.40 X | ||||
| Revenue | 748.02 M | ||||
| EBITDA | 74.66 M | ||||
| Cash And Equivalents | 591.16 M | ||||
| Cash Per Share | 14.91 X | ||||
| Total Debt | 54.66 M | ||||
| Debt To Equity | 0.06 % | ||||
| Book Value Per Share | 19.68 X | ||||
| Cash Flow From Operations | 285.51 M | ||||
| Earnings Per Share | 2.04 X | ||||
| Total Asset | 1.3 B | ||||
| Retained Earnings | (125.85 M) | ||||
About Duolingo Performance
By examining Duolingo's fundamental ratios, stakeholders can obtain critical insights into Duolingo's financial health, operational efficiency, and overall profitability. These insights assist in making well-informed investment and management decisions. For example, a high Return on Assets and Return on Equity would indicate that Duolingo is effectively utilizing its assets and equity to generate significant profits, enhancing its appeal to investors. On the other hand, low ROA and ROE values could reveal issues in asset and equity management, highlighting the need for operational improvements.
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.Things to note about Duolingo performance evaluation
Checking the ongoing alerts about Duolingo for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Duolingo help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Duolingo generated a negative expected return over the last 90 days | |
| Duolingo has high historical volatility and very poor performance | |
| Duolingo has a strong financial position based on the latest SEC filings | |
| Over 98.0% of the company shares are held by institutions such as insurance companies |
- Analyzing Duolingo's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Duolingo's stock is overvalued or undervalued compared to its peers.
- Examining Duolingo's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Duolingo's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Duolingo's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Duolingo's stock. These opinions can provide insight into Duolingo's potential for growth and whether the stock is currently undervalued or overvalued.
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 closely tied 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Diversified Consumer Services space 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.
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.