Youdao Inc (DAO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Youdao Inc stock $18.57, price $19.71, that is 5.8% below the price, quality 57 out of 100. Rating: fairly valued. Calculated from audited financials with 20 of our 26 valuation models and 37 quality factors, updated daily.
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Youdao Inc
DAO · USThe stock costs about what our calculation considers fair.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $3.01 – $20.69 · fair‑value band $11.35 – $31.63 · the $19.71 price screens above the $18.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Company profile
Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in the People's Republic of China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services.
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The Learning Services segment offers digital content services, which provides interactive learning features, such as Youdao Lingshi; STEAM courses, including Youdao iCode operated by Youdao Premium Courses; and adult courses comprising China University MOOC. The Smart Devices segment develops and offers smart devices, such as Youdao Dictionary Pen, Youdao Tutoring Pen, and Youdao Smart Learning Terminal.
The Online Marketing Services Segment provides performance-based advertising, and global marketing and promotion services.
It also offers Youdao Dictionary, a language app; other dictionary and translation tools; and AI-based learning tools, including Hi Echo, Mr. P AI Tutor and Scholar AI by Confucius LLM. In addition, the company licenses technologies and services through Youdao Smart Cloud.
It provides learning content, applications, and solutions, which cover topics and target people from age groups through its websites and mobile applications. Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. operates as a subsidiary of NetEase, Inc.
Stock analysis
Youdao Inc (DAO) currently trades at $19.71, while our model-based Fair Value estimate is $18.57, so the stock looks roughly fairly valued today (gap 6.1%).
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Valuation
Bull case: the DCF Models group reads highest at a median of $26.88 per share, and 10 of the 20 models we run sit above the $19.71 price.
Bear case: the Multiples group reads lowest at $15.13, and 10 of the 20 models stay below the price. Data coverage for this calculation is low.
Scenario range: $11.35 (bear) to $31.63 (bull), the price of $19.71 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Consumer Defensive sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Youdao Inc reported revenue of $5.9B in FY2025 versus $4.0B in FY2021, a compound +10.1%/yr. Reported net income was $107M in FY2025.
Key figures
Market cap $2.4B Mid · P/E ratio 100.1 · P/S ratio 1.82 · EPS (TTM) $0.1900 · Net margin 1.8% · Return on assets (EBIT) −13.6% (5-year average) · Operating margin 7.6% · Revenue (TTM) $6.0B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 35 out of 100 (low confidence).
What moves the price
The share trades about 5% below its 52-week high and 134% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 31% fair-value upside, at −6%, DAO screens richer than that median.
Fair Value models
All 20 models by family
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, 6 officers or directors sold shares worth $0 and none bought.
- SaleSu PengSenior Vice President6,750 shares at ?Sep 9, 2026
- SaleYinghui WuSenior Vice President6,750 shares at ?Sep 9, 2026
- SaleLei Jinpresident70,047 shares at ?Sep 9, 2026
- SaleHeung Yeung ShumDirector21,198 shares at ?Sep 1, 2026
- SaleYongwei LiVice President6,300 shares at ?Jun 30, 2026
- SaleJimmy Y. LaiDirector3,997 shares at ?May 28, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗
Revenue & earnings trend
Growth Forecast
Watch DAO, get fair value alerts →
Earlier news
- Youdao (DAO) Q2 2026 Earnings Call Transcript
- Youdao Q2 Earnings Call Highlights
- Youdao shares rise as Q2 earnings beat offsets revenue shortfall
- Youdao Reports Second Quarter 2026 Unaudited Financial Results
Compare Youdao Inc with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Education & Training Services · 108 stocks
Valuation Multiplesvs Education & Training Services median · lower = cheaper
Strength profile in five axes (Snowflake)
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Context: sector, industry, market
- Is the Consumer Discretionary sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- EBIT margin by industry
- P/S ratio by industry
- Piotroski F-Score screener with fair value
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Education & Training Services stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Stride, Inc LRN | $75.00 | $171.72 | +129% | vs DAO |
| New Oriental Education & Technology Group 9901 | HK$42.46 | HK$64.52 | +52% | vs DAO |
| Perdoceo Education Corporation PRDO | $26.88 | $40.81 | +52% | vs DAO |
| Covista Inc CVSA | $110.32 | $152.79 | +39% | vs DAO |
| Grand Canyon Education, Inc LOPE | $117.69 | $154.63 | +31% | vs DAO |
| Laureate Education, Inc LAUR | $33.59 | $42.74 | +27% | vs DAO |
| East Buy Holding 1797 | HK$30.60 | HK$33.66 | +10% | vs DAO |
| McGraw Hill, Inc MH | $10.86 | $8.95 | −18% | vs DAO |
| Sanoma Oyj SANOMA | €8.80 | €6.51 | −26% | vs DAO |
| Physicswallah Limited PWL | ₹130.00 | ₹33.55 | −74% | vs DAO |
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Key figures of Youdao Inc
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