Youdao, Inc.

NYSE:DAO Stock Report

Market Cap: US$622.7m

Youdao Valuation

Is DAO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DAO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate DAO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate DAO's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAO?

Key metric: As DAO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DAO. This is calculated by dividing DAO's market cap by their current earnings.
What is DAO's PE Ratio?
PE Ratio80.5x
EarningsCN¥55.69m
Market CapCN¥4.51b

Price to Earnings Ratio vs Peers

How does DAO's PE Ratio compare to its peers?

The above table shows the PE ratio for DAO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.4x
LINC Lincoln Educational Services
51.6x60.6%US$491.1m
APEI American Public Education
35.1x58.3%US$347.3m
UDMY Udemy
n/a68.0%US$1.1b
COUR Coursera
n/a23.9%US$1.1b
DAO Youdao
80.5x93.4%US$622.7m

Price-To-Earnings vs Peers: DAO is expensive based on its Price-To-Earnings Ratio (80.5x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

How does DAO's PE Ratio compare vs other companies in the US Consumer Services Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QSG QuantaSing Group
2.7x-21.4%US$143.12m
STG Sunlands Technology Group
1.3xn/aUS$90.37m
RGS Regis
0.6xn/aUS$48.87m
REDU RISE Education Cayman
1xn/aUS$40.41m
DAO 80.5xIndustry Avg. 19.4xNo. of Companies6PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DAO is expensive based on its Price-To-Earnings Ratio (80.5x) compared to the US Consumer Services industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is DAO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio80.5x
Fair PE Ratio55x

Price-To-Earnings vs Fair Ratio: DAO is expensive based on its Price-To-Earnings Ratio (80.5x) compared to the estimated Fair Price-To-Earnings Ratio (55x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DAO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$5.18
US$5.96
+15.1%
13.4%US$6.78US$4.01n/a8
Nov ’25US$5.23
US$5.38
+2.9%
19.5%US$6.89US$4.08n/a8
Oct ’25US$4.32
US$5.46
+26.5%
19.5%US$7.00US$4.14n/a8
Sep ’25US$3.30
US$5.43
+64.6%
20.1%US$7.11US$4.10n/a8
Aug ’25US$3.05
US$6.11
+100.4%
20.8%US$8.11US$4.00n/a8
Jul ’25US$3.82
US$6.11
+60.0%
20.8%US$8.11US$4.00n/a8
Jun ’25US$3.73
US$6.12
+64.1%
21.0%US$8.13US$3.97n/a8
May ’25US$3.53
US$6.20
+75.6%
21.6%US$8.34US$4.00n/a8
Apr ’25US$4.15
US$6.20
+49.4%
21.6%US$8.34US$4.00n/a8
Mar ’25US$4.36
US$6.15
+41.1%
21.4%US$8.33US$4.36n/a8
Feb ’25US$3.41
US$6.21
+82.1%
27.0%US$9.36US$4.37n/a8
Jan ’25US$3.94
US$6.39
+62.1%
24.8%US$9.46US$4.39n/a8
Dec ’24US$4.17
US$6.39
+53.2%
24.8%US$9.46US$4.39n/a8
Nov ’24US$4.13
US$6.78
+64.0%
20.4%US$9.33US$5.17US$5.238
Oct ’24US$4.02
US$6.74
+67.6%
20.4%US$9.27US$5.14US$4.328
Sep ’24US$4.12
US$6.91
+67.7%
20.5%US$9.35US$5.20US$3.308
Aug ’24US$4.90
US$7.83
+59.8%
13.4%US$9.97US$6.63US$3.058
Jul ’24US$4.82
US$7.83
+62.5%
13.4%US$10.01US$6.66US$3.828
Jun ’24US$4.66
US$7.87
+68.8%
14.0%US$9.99US$6.70US$3.737
May ’24US$6.02
US$10.43
+73.3%
12.3%US$12.54US$8.78US$3.537
Apr ’24US$8.50
US$10.43
+22.7%
12.3%US$12.54US$8.78US$4.157
Mar ’24US$8.58
US$9.17
+6.9%
27.4%US$12.42US$4.13US$4.366
Feb ’24US$7.81
US$6.21
-20.4%
30.8%US$10.08US$4.23US$3.416
Jan ’24US$5.38
US$6.12
+13.8%
30.7%US$9.91US$4.16US$3.946
Dec ’23US$4.69
US$5.94
+26.6%
30.5%US$9.54US$4.00US$4.176
Nov ’23US$3.46
US$6.32
+82.7%
31.0%US$9.72US$3.60US$4.136

Analyst Forecast: Target price is less than 20% higher than the current share price.

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