Youdao Inc (DAO) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Youdao Inc $15.23, price $14.62, upside +4.2%, quality 54 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Youdao Inc
DAO · USNeutralThe stock looks roughly fairly valued with average quality.
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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, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $3.01 – $24.91 · fair‑value band $10.81 – $27.55 · the $14.62 price screens below the $15.23 fair value. Dashed = 300-day average. As of Sep 23, 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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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. 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 $14.62, while our model-based Fair Value estimate is $15.23, implying the stock looks roughly 4.0% fairly valued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $24.48 per share, and 16 of the 20 models we run sit above the $14.62 price.
Bear case: the Growth DCF group reads lowest at $10.90, and 4 of the 20 models stay below the price. Evidence for this calculation is medium.
Scenario range: $10.81 (bear) to $27.55 (bull), the price of $14.62 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 54/100 (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 $1.8B · P/E ratio 133.9 · P/S ratio 2.43 · EPS (TTM) $0.0900 · Net margin 1.8% · Return on assets (EBIT) −13.6% · Operating margin 4.3% · Revenue (TTM) $6.0B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 21% below its 52-week high and 73% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 17% fair-value upside, at 4%, DAO screens richer than that median.
Fair Value models
All 20 models by family
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Set up alert →Quality Score breakdown
Of which business quality 53 · Market factors (momentum, volatility) 78
Revenue & earnings trend
Growth Forecast
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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 · 136 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)
- 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 |
|---|---|---|---|
| New Oriental Education & Technology Group EDU | $54.74 | $63.95 | +17% |
| TAL Education Group TAL | $11.87 | $33.07 | +179% |
| Laureate Education, Inc LAUR | $36.13 | $39.95 | +11% |
| Grand Canyon Education, Inc LOPE | $146.78 | $161.46 | +10% |
| Physicswallah Limited PWL | ₹136.35 | ₹36.02 | −74% |
| Covista Inc CVSA | $123.00 | $135.45 | +10% |
| Stride, Inc LRN | $78.69 | $140.28 | +78% |
| Universal Technical Institute, Inc UTI | $20.41 | $21.53 | +5% |
| Perdoceo Education Corporation PRDO | $31.23 | $41.28 | +32% |
| Strategic Education, Inc STRA | $76.47 | $105.48 | +38% |
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Key figures of Youdao Inc
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