Fair value · Youdao, Inc. (DAO) · updated 2026-08-28 · from 20-F FY2025
Four independent valuation methods run on Youdao’s own SEC filings. One says overvalued, one says undervalued, two say about fairly priced. The methods land close together.
Prices and market caps: Cboe delayed data, at least 15 minutes delayed. Not real-time. Fundamentals from SEC filings.
Bear, base and bull are the 25th, 50th and 75th percentile of the methods that produced a usable estimate. Weights say how much a method is trusted for this sector; they do not change the range.
| Method | Estimate | vs price | Weight | Why this method |
|---|---|---|---|---|
EV/FCF Medium weight 20× free cash flow per share, i.e. a 5% cash yield. Reads low for companies the market expects to keep growing. Based on latest annual FCF (quarterly TTM unavailable) | $4.99 | -70% | Medium weight | 20× free cash flow per share, i.e. a 5% cash yield. Reads low for companies the market expects to keep growing. |
DCF High weight Projects free cash flow for the coming years and discounts it back to today. The most complete method, and the most sensitive to the growth and discount-rate assumptions. | $16 | -1% | High weight | Projects free cash flow for the coming years and discounts it back to today. The most complete method, and the most sensitive to the growth and discount-rate assumptions. |
20-F FY2025 · fiscal year ended 2025-12-31 · filed 2026-04-15 · accession 0001193125-26-155933
Open this filing on sec.govEV/EBITDA Medium weight Values the whole business at 10× EBITDA and divides by the share count. A mid-cycle industrial multiple; fast growers trade far above it. | $18 | +8% | Medium weight | Values the whole business at 10× EBITDA and divides by the share count. A mid-cycle industrial multiple; fast growers trade far above it. |
Earnings Power Value High weight Greenwald’s Earnings Power Value: what current earnings are worth if they never grow. Everything above it is what you pay for growth. | $19 | +15% | High weight | Greenwald’s Earnings Power Value: what current earnings are worth if they never grow. Everything above it is what you pay for growth. |
P/E vs sector Medium weight Trailing diluted EPS times the sector median P/E. What the stock would be worth if the market priced it like an average peer. Negative or unavailable EPS | No estimate | Medium weight | Trailing diluted EPS times the sector median P/E. What the stock would be worth if the market priced it like an average peer. | |
Growth-trajectory DCF Medium weight A two-stage DCF that grows earnings at the company’s own EPS trend, then fades to the industry’s long-run rate. No trajectory data available | No estimate | Medium weight | A two-stage DCF that grows earnings at the company’s own EPS trend, then fades to the industry’s long-run rate. | |
P/B vs sector High weight Sector median price-to-book times book value per share. Works for banks and asset-heavy businesses, says little about software. Negative or unavailable book value | No estimate | High weight | Sector median price-to-book times book value per share. Works for banks and asset-heavy businesses, says little about software. | |
Graham Number High weight Benjamin Graham’s 1949 rule of thumb: √(22.5 × EPS × book value). It punishes asset-light companies, so it reads low for big tech. Requires positive EPS | No estimate | High weight | Benjamin Graham’s 1949 rule of thumb: √(22.5 × EPS × book value). It punishes asset-light companies, so it reads low for big tech. | |
Interpretation
PEG = P/E ÷ Annual EPS Growth Rate (%). Peter Lynch's growth-adjusted value metric.
Interpretation
EV/EBITDA = Enterprise Value ÷ EBITDA. Capital-structure neutral — preferred by professional investors.
Interpretation
P/S = Market Cap ÷ Revenue. Useful for growth/unprofitable companies. SaaS/high-growth norms higher.
P/B Ratio is not meaningful: Negative book value — P/B not meaningful
Meaningful metric for Consumer Defensive
Interpretation
P/B = Price ÷ Book Value per Share. Essential for banks, REITs, and asset-heavy companies.
Graham Number is not meaningful: Negative or zero book value — Graham Number not meaningful
Interpretation
√(22.5 × EPS × Book Value/Share) — Benjamin Graham's intrinsic value estimate.
15.0% vs current price ($16.44)
Greenwald EPV assumes zero future growth — this is the floor value of the business as a going concern.
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DCF fair value, Graham number, EPV, key multiples and growth rates in one clean PDF.
