Discounted Cash Flow

Duolingo, Inc.

DUOL · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2020 $161.7m $-15.8m $14.3m -9.8% $-1.24
2021 $250.8m (55.1%) $-60.1m (-281.2%) $5.6m (-61.0%) -24.0% (-145.8%) $-2.57 (-107.3%)
2022 $369.5m (47.3%) $-59.6m (0.9%) $48.1m (761.3%) -16.1% (32.8%) $-1.51 (41.2%)
2023 $531.1m (43.7%) $16.1m (127.0%) $150.4m (212.8%) 3.0% (118.8%) $0.39 (125.8%)
2024 $748.0m (40.8%) $88.6m (451.3%) $273.4m (81.8%) 11.8% (291.4%) $2.04 (423.1%)
2025 $1.0b (38.7%) $414.1m (367.5%) $369.7m (35.2%) 39.9% (237.0%) $9.05 (343.6%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model