Update shared on 14 Dec 2025
Fair value Decreased 9.72%Analysts have trimmed their price target on Youdao by about 10 percent to approximately 16 dollars. This reflects slightly higher discount-rate assumptions and a lower future earnings multiple that more than offset stronger projected revenue growth.
What's in the News
- Youdao reported that between July 1 and September 30, 2025, it did not repurchase any additional shares, keeping total buybacks under its November 17, 2022 program at 7.5 million shares, or 6.19 percent of shares outstanding, for 33.8 million dollars in aggregate (company filing).
- In November 2025, the company extended the duration of its share repurchase plan by one year, pushing the end date to November 17, 2026 (company announcement).
- Youdao, Inc. was added to the S&P Global BMI Index, increasing its visibility among global institutional investors tracking the benchmark (index provider update).
Valuation Changes
- The fair value estimate has fallen moderately from 18.05 dollars to 16.30 dollars per share, reflecting a roughly 10 percent reduction.
- The discount rate has risen slightly from about 7.90 percent to about 8.10 percent, implying a marginally higher required return on equity.
- The revenue growth assumption has increased modestly from roughly 13.4 percent to about 14.9 percent per year, indicating a somewhat stronger top line outlook.
- The net profit margin assumption has edged down from about 8.0 percent to about 7.4 percent, signaling slightly lower expected profitability.
- The future P/E multiple has declined meaningfully from about 30.0x to about 26.1x, pointing to a less aggressive valuation on projected earnings.
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