* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $884 M
Debt : $55 M
EBITDA : $80 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Educational services
Industry: Elementary and secondary schools
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 74.93
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $78 M
Average Revenue: $314 M
Revenue Converted To Free Cash Flow (%): 25.0%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $748 M
Revenue 4 Years Ago (2020-12-31): $162 M
Last 5 Years Average Revenue Growth: 73%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $47 M
Share Count 5 Years Ago (2020-12-31): $36 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.70
Trailing 12-Month Earnings Per Share (EPS): $3.25
Average Earnings Per Share (EPS): $3.98
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 4 valid ROE years (max 20).Average ROE: -2.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $298
52-Week Low: $145
Threshold Price (15% Above 52-Week Low): $167
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $15,749 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Duolingo Inc (DUOL) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE 50.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE 15, Industry Based PE 30, Growth Based PE 50, RCFC Based PE 30.01, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 25.35. Value-Trades has assined P/E value 25.35. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.975.
The fair value of Duolingo Inc (DUOL) stock should be (25.35 x $3.975) = $100.76.
