Is It Time To Reassess Duolingo (DUOL) After A 54% One Year Share Price Fall

Simply Wall St.01-28

If you are wondering whether Duolingo's share price still makes sense after a wild ride, the key question now is what you are really paying for with each US$1 of the stock. Duolingo last closed at US$...

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Duolingo last closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-duol/duolingo/news/is-it-time-to-reassess-duolingo-duol-after-a-54-one-year-sha\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Time To Reassess Duolingo (DUOL) After A 54% One Year Share Price Fall</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Time To Reassess Duolingo (DUOL) After A 54% One Year Share Price Fall\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-28 03:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nasdaq-duol/duolingo/news/is-it-time-to-reassess-duolingo-duol-after-a-54-one-year-sha><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Duolingo's share price still makes sense after a wild ride, the key question now is what you are really paying for with each US$1 of the stock. Duolingo last closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nasdaq-duol/duolingo/news/is-it-time-to-reassess-duolingo-duol-after-a-54-one-year-sha\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4204","symbol_name":"教育服务","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-duol/duolingo/news/is-it-time-to-reassess-duolingo-duol-after-a-54-one-year-sha","article_id":"2606560437","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice1-main-header/1585186668959"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-services/nasdaq-duol/duolingo/news/is-it-time-to-reassess-duolingo-duol-after-a-54-one-year-sha","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2606560437","pubTimestamp":1769542235,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Duolingo's share price still makes sense after a wild ride, the key question now is what you are really paying for with each US$1 of the stock.\nDuolingo last closed at US$151.56, with returns of 0.9% over 7 days, a 16.6% decline over 30 days, a 14.1% decline year to date, and a 53.6% decline over 1 year, while the 3 year return stands at 65.2%.\nRecent coverage has focused on Duolingo's position in app based language learning and its push to broaden its education...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4204":"教育服务","BK4588":"碎股","BK4539":"次新股","BK4613":"AI应用软件","BK4585":"ETF&股票定投概念","DUOL":"多邻国"},"translate_title":"多邻国(DUOL)股价一年下跌54%后，是时候重新评估它了吗","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DUOL":1.98},"content_text":"If you are wondering whether Duolingo's share price still makes sense after a wild ride, the key question now is what you are really paying for with each US$1 of the stock. Duolingo last closed at US$151.56, with returns of 0.9% over 7 days, a 16.6% decline over 30 days, a 14.1% decline year to date, and a 53.6% decline over 1 year, while the 3 year return stands at 65.2%. Recent coverage has focused on Duolingo's position in app based language learning and its push to broaden its education offering. This has kept investors focused on how durable its user and revenue model might be. At the same time, the sharp pullback in the share price has raised questions about whether expectations had simply run ahead of what the business is currently delivering. Our valuation checks give Duolingo a 3/6 score, which suggests there are mixed signals that are worth unpacking. We will walk through those traditional valuation methods before finishing with a broader way of thinking about what the stock could be worth.  Find out why Duolingo's -53.6% return over the last year is lagging behind its peers. AdvertisementApproach 1: Duolingo Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the business might be worth right now. For Duolingo, the model uses a 2 stage Free Cash Flow to Equity approach based on cash flows in US$. The latest twelve month free cash flow is about $341.6 million. Analyst and extrapolated projections in the model show free cash flow rising to $495.7 million in 2026, $633.8 million in 2027 and $732 million in 2028, with further years out to 2035 estimated by Simply Wall St. After discounting these projected streams, the model arrives at an estimated intrinsic value of about $458.22 per share. Compared with the recent share price of US$151.56, this implies Duolingo appears about 66.9% undervalued on this DCF framework. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Duolingo is undervalued by 66.9%. Track this in your watchlist or portfolio, or discover 886 more undervalued stocks based on cash flows. DUOL Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Duolingo. Approach 2: Duolingo Price vs Earnings For a profitable company, the P/E ratio is a useful shortcut because it directly links what you pay per share to the earnings that support that price. In simple terms, a higher P/E often reflects stronger growth expectations or lower perceived risk, while a lower P/E can point to more modest expectations or higher uncertainty. Duolingo is currently trading on a P/E of 18.15x. That sits slightly above the Consumer Services industry average P/E of 17.12x, but below the peer group average of 28.39x. To go a step further, Simply Wall St calculates a proprietary “Fair Ratio” of 9.57x, which is the P/E level suggested by factors such as Duolingo’s earnings growth profile, margins, industry, market cap and risk characteristics. This Fair Ratio can be more useful than a simple comparison with industry or peers because it adjusts for company specific traits instead of assuming that all firms in the same sector deserve similar multiples. Compared with the current P/E of 18.15x, the Fair Ratio of 9.57x suggests the shares are trading above what this framework would indicate. Result: OVERVALUED NasdaqGS:DUOL P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1426 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Duolingo Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your own story about a company, linked directly to your assumptions about its future revenue, earnings, margins and what you think a fair value per share could be. Instead of just looking at ratios like the P/E in isolation, a Narrative connects three things in one place: the business story you believe, the financial forecast that story implies, and the fair value that results from those numbers. On Simply Wall St, Narratives are available on the Community page and are used by millions of investors as a straightforward tool that helps them compare their Fair Value estimate with the current share price and decide whether that gap looks attractive enough to act on or not. The powerful part is that your Narrative updates as new information arrives. For example, when Duolingo releases earnings or when there is fresh news, your forecast and fair value can be refreshed without you rebuilding everything from scratch. For Duolingo, one investor might focus on a higher Fair Value based on strong long term user engagement, while another might choose a lower Fair Value that leans on more conservative assumptions for future growth and profitability. Do you think there's more to the story for Duolingo? Head over to our Community to see what others are saying! NasdaqGS:DUOL 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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